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GTAP Resource #3854

"The impact of trade liberalization in Senegal: An assessment of the potential impacts of an Economic Partnership Agreement (EPA) on Senegalese Households using a Single country CGE analysis"
by Fall, Cheickh Sadibou

This work addresses the need to update the studies on the relationship between trade liberalization and poverty in developing countries. Indeed, next to the multilateral negotiations in the WTO, Senegal like most of the developing countries is involved in a regional agreement as evidenced by negotiations between the EU and its ACP partners for the implementation of a free trade area notably the ongoing Economic partnership agreement negotiations (EPA). Therefore, the general objective of this study is to evaluate the impact of trade liberalization on poverty and inequality in Senegal, but the focus is made on the assessment of EPA on Senegalese households for several reasons. First of all, the EU and its ACP partners were unable to conclude the EPA negotiations as planned since January 1st 2008. Second, most recent assessments of the potential impact of EPA in Senegal have been conducted through a multicountry CGE. But a complete evaluation of the benefits of trade reform for developing countries requires the addition of other instruments, such as single country trade models that allow for microsimulations aimed at evaluating the precise impact of trade liberalization on income distribution.
So from methodological point of view, this work will be carried out using a single country computable general equilibrium (CGE) model including a Household disaggregation in order to capture the micro effects of the implementation of these macro policies on Senegalese households. The CGE used is a static, perfect competition and non monetary which describes a small open economy. This model includes a public agent, a household disaggregation and the implementation of a compensatory tax through income tax. A proportional tax is applied to income, the level of tax (in %) being selected to compensate for variations in tax revenue and keep the same level of public deficit and public good production. In addition, this model will account for the informal sector because of its imp...

Resource Details (Export Citation) GTAP Keywords
Category: 2012 Conference Paper
Status: Published
By/In: Presented at the 15th Annual Conference on Global Economic Analysis, Geneva, Switzerland
Date: 2012
Created: Fall, C. (4/28/2012)
Updated: Fall, C. (4/28/2012)
Visits: 1,824
- Preferential trading arrangements
- Economic analysis of poverty
- Calibration and parameter estimation
- Africa (West)

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