GTAP Resources: Resource Display
| GTAP Resource #7177 |
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"The Impact of African Continental Free Trade Area (AfCFTA) Implementation on Ethiopian Economy" by Hailesilassie, Mussie Mindaye, Carlo Migliardo and Tadele Ferede Abstract Africa has commonly been an economically fractured market with limited trade integration in various corners of the continent and a low level of intra-regional trade among the countries. In 2021, intra-African trade within the continent accounted for only 14%, or nearly 71 billion USD. In response to Africa’s low level of economic integration, on March 21, 2018, African leaders signed the African Continental Free Trade Area (AfCFTA) in Rwanda. Apart from Eritrea, all 54 African countries have signed the agreement, and 46 countries have ratified it. This study investigated the impact of the African Continental Free Trade Area (AfCFTA) implementation on Ethiopia's trade performance. The research utilized a computable general equilibrium (CGE) model using the Global Trade Policy Analysis Project (GTAP) framework. The model was designed to simulate situations involving the reduction of tariff and non-tariff barriers. The main findings of the analysis showed an increase in GDP and welfare gains; the price of imports and government revenue declined; and the price of exports was mixed, with an increase in agriculture in the early years of liberalization and a decrease in industrial products. The quantity of imports is rising for all products except light and heavy manufacturing. On the other hand, the quantity of exports in manufacturing is increasing, but not in the agricultural sector. Furthermore, trade creation occurs in all sectors, except in the extraction sector. The trade diversion has tiny results. While the impact of perfect and imperfect competition markets is alike, the influence of perfect competition is more pronounced. Keywords: CGE model, AfCFTA, Reduction of Tariff and Non-Tariff barriers, Ethiopia |
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- GTAP Data Base and extensions - Bridging CGE and new quantitative trade (NQT) literature - Preferential trading arrangements - Baseline development - Africa (Central) - Africa (East) - Africa (North) - Africa (Southern) - Africa (West) |
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Public Access  Paper (698.9 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
