IDEAS home Printed from https://ideas.repec.org/a/mve/journl/v34y2008i1p45-75.html
   My bibliography  Save this article

The West African Economic and Monetary Union and the African Growth and Opportunity Act: A Computable General Equilibrium Approach

Author

Listed:
  • Hounsou Remy

    (University of Abomey)

  • Michael J. Applegate

    (Oklahoma State University)

Abstract

The countries of the West African Economic and Monetary Union (WAEMU) like the other Sub-Saharan African countries face the challenge of generating sustained economic growth. Among factors that contribute to this problem are the low degree of openness to trade and the lack of foreign capital. To encourage trade and investment in Sub-Saharan Africa, the United States passed the African Growth and Opportunity Act (AGOA). This paper develops and uses a Computable General Equilibrium model to determine the impacts of this act on WAEMU as a group. The results from the simulation of free-trade and an increase in foreign capital inflow show that the sectoral effects of these policies are considerable. At the macro level we see increases in the growth rate of real GDP, real investment, government revenues, total saving, and total consumption.

Suggested Citation

  • Hounsou Remy & Michael J. Applegate, 2008. "The West African Economic and Monetary Union and the African Growth and Opportunity Act: A Computable General Equilibrium Approach," Journal of Economic Insight, Missouri Valley Economic Association, vol. 34(1), pages 45-75.
    • Handle: RePEc:mve:journl:v:34:y:2008:i:1:p:45-75
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zenebe, Addisalem & Peterson, Wesley & Wamisho, Kassu, 2014. "The Impact of the African Growth and Opportunity Act (AGOA): An Empirical Analysis of Sub-Saharan African Agricultural Exports," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170590, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mve:journl:v:34:y:2008:i:1:p:45-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ken Brown (email available below). General contact details of provider: https://edirc.repec.org/data/mveaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.