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GTAP Resources: Resource Display

GTAP Resource #3070

"Trade policy, fiscal constraint and the long term impact fo government expenditure"
by Decaluwe, Bernard and Helene Maisonnave


Abstract
Many studies have evaluated the impact of trade liberalisation in South Africa. Some of them evaluate the impacts on poverty and inequality. Our study proposes to evaluate the consequences of trade liberalisation when fiscal constraints and budget discipline lead government to reallocate the fiscal adjustment induced. More precisely, we will focus on the consequences on the education system and the consequences of students’ performances at school in long run.
We will present three scenarios of total trade liberalisation and we will analyse the effects of this change on students’ behaviours via relative wages and public spending level. Thus, students would be more incentive to go on studying if skilled wage rate is increasing, or entering the labour market if this wage rate decreases. In the same way, a decrease in public education spending would decrease the quality of education and then lead students to leave school.
The paper is presented as follows: section 1 presents the situation of trade liberalisation in South Africa. Section 2 shows the state of the art of CGE dealing with trade liberalisation in South Africa. Sections 3 and 4 respectively present the model and data used. Section 5 analyses the results and section 6 concludes.


Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2009
Version:
Created: Decaluwe, B. (4/15/2009)
Updated: Decaluwe, B. (4/15/2009)
Visits: 1,385
- Domestic policy analysis
- Economic development
- Africa (Southern)


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