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GTAP Resource #4528

"Bali and the Projected Impacts of Enhanced Trade Facilitation on Poor Households in Africa"
by Minor, Peter, Anna Strutt and Terrie Walmsley

The World Trade Organization (WTO) Bali negotiations concluded in December 2013, resulting in the Bali Package of trade liberalizations which was negotiated as part of the Doha Round of WTO trade talks. The Doha Round has been dubbed the development round, since an emphasis is being put on trade reforms which assist developing countries. Trade facilitation is a key component of the Bali package and is widely expected to generate significant gains for developing countries. It is believed that reductions in red tape at the borders of developed and developing countries will promote trade and economic growth, with an assumption generally made that the rising trade will benefit the poor. While strong linkages between growth and pro-poor growth have been shown, the relationship is not universal (Winters, McCulloch and McKay 2004). The objective of this research is to test the theory that enhanced trade facilitation will benefit poor households in Africa. Our research seeks not only to test trade facilitation’s impact on pro-poor growth, but to determine the contributors in terms of trade, consumption and income composition in selected African countries. This will help to provide policy guidance to a number of African countries.

Our approach will be to use the MyGTAP CGE model and data tool developed by Walmsley and Minor (2013). MyGTAP provides a means for breaking up the GTAP regional household into multiple households and splitting the standard five factors of production in the GTAP database. Split factors are then linked back to household income through factor ownership shares. Although MyGTAP provides a means for splitting the GTAP database, the user must provide their own data to split households. MyGTAP only allows the user to split the household in one region of the model, while allowing the standard factors of production and a unified household in all other regions. Our plan is to test the impacts of enhanced trade facilitation on two African co...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Strutt, A. (4/15/2014)
Updated: Strutt, A. (4/15/2014)
Visits: 2,624
- Africa (Southern)

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Posted by: Minor, Peter   4/15/2014 9:09:00 PM
Work in progress, please do not quote.