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Dynamic Effects of an Economic Partnership Agreement: Implications for Senegal

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  • Cissokho, Lassana

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.

Suggested Citation

  • Cissokho, Lassana, 2010. "Dynamic Effects of an Economic Partnership Agreement: Implications for Senegal," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 97622, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea11:97622
    DOI: 10.22004/ag.econ.97622
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    References listed on IDEAS

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    1. N/A, 1999. "Research in Progress," ILR Review, Cornell University, ILR School, vol. 53(1), pages 170-170, October.
    2. 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 177-199, February.
    3. N/A, 1999. "Research in Progress," ILR Review, Cornell University, ILR School, vol. 52(2), pages 330-333, January.
    4. Lofgren, Hans & El-Said, Moataz & Robinson, Sherman, 1999. "Trade liberalization and complementary domestic policies: a rural-urban general equilibrium analysis of Morocco," TMD discussion papers 41, International Food Policy Research Institute (IFPRI).
    5. N/A, 1999. "Research in Progress," ILR Review, Cornell University, ILR School, vol. 52(4), pages 663-663, July.
    6. Sadni Jallab, Mustapha & Karingi, Stephen & Oulmane, Nassim & Perez, Romain & Lang, Rémi & Ben Hammouda, Hakim, 2005. "Economic and Welfare Impacts of the EU-Africa Economic Partnership Agreements," MPRA Paper 12875, University Library of Munich, Germany.
    7. N/A, 1999. "Research in Progress," ILR Review, Cornell University, ILR School, vol. 52(3), pages 496-499, April.
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    Keywords

    Crop Production/Industries; International Relations/Trade;

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