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Dynamic Effects of an Economic Partnership Agreement: Implications for Senegal

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  • Cissokho, Lassana
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    Abstract

    In this paper, I use a dynamic recursive computable general equilibrium to evaluate, for the economy of Senegal, the dynamic effects of an economic Partnership Agreement between West African countries and the European Union. In the simulation, the liberalization scheme is designed in a way similar to the interim agreement signed by Cote d’Ivoire and Ghana. The effects described are the shifts from the baseline numbers. I found that the production of agricultural goods will decrease, affecting employment negatively, particularly in unskilled labor, since this sector is very labor intensive. In fact, employment drops at around 0.2 percent a year, during the simulation period (2012-2030). GDP grows on average by 1.9 percent a year. The effects of the economic partnership agreement closely mirror the results of a free trade agreement between Senegal and the European Union, implying that a customs union between West African countries is not necessary to reap of the benefit of the former.

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    File URL: http://purl.umn.edu/97622
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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas with number 97622.

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    Date of creation: Dec 2010
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    Handle: RePEc:ags:saea11:97622

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    Keywords: Economic Partnership Agreement; Free Trade Area; Dynamic Computable General Economic; Crop Production/Industries; International Relations/Trade;

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    1. Dissou, Yazid, 2002. "Dynamic Effects in Senegal of the Regional Trade Agreement among UEMOA Countries," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 177-99, February.
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