Can Regional Integration Accelerate Development in Africa? CGE Model Simulations of the Impact of the SADC FTA on the Republic of Madagascar
AbstractMadagascar plans to start phasing out its customs tariffs on imports from the Southern African Development Community in 2007. This paper uses a CGE model to evaluate the impact of the SADC FTA on Madagascar economy. The results suggest that the SADC FTA would only have a limited impact on Madagascar's real GDP because the liberalization affects only a small share of its total imports. However, Madagascar's trade and production pattern would change and benefit the textile and clothing sector. Removing rigidities in the labor and capital market would increase the gains but they would remain limited. Gains from the SADC FTA become substantial only when the regional liberalization is accompanied by a multilateral liberalization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 07/66.
Date of creation: 01 Mar 2007
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-AFR-2007-05-04 (Africa)
- NEP-ALL-2007-05-04 (All new papers)
- NEP-CMP-2007-05-04 (Computational Economics)
- NEP-INT-2007-05-04 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Gilbert & Thomas Wahl, 2002. "Applied General Equilibrium Assessments of Trade Libereralisation in China," The World Economy, Wiley Blackwell, vol. 25(5), pages 697-731, 05.
- Ann Harrison & Ana Revenga, 1995. "The Effects of Trade Policy Reform: What Do We Really Know?," NBER Working Papers 5225, National Bureau of Economic Research, Inc.
- Collier, Paul, 1979. "The Welfare Effects of Customs Union: An Anatomy," Economic Journal, Royal Economic Society, vol. 89(353), pages 84-95, March.
- Wacziarg, Romain, 1998.
"Measuring the dynamic gains from trade,"
Policy Research Working Paper Series
2001, The World Bank.
- Walkenhorst, Peter, 2006. "Compensating Lost Revenue in Regional Trade Agreements," MPRA Paper 12279, University Library of Munich, Germany.
- Huff, Karen & Thomas W. Hertel, 2001. "Decomposing Welfare Changes in GTAP," GTAP Technical Papers 308, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Seghezza, Elena & Baldwin, Richard E., 2008.
"Testing for Trade-Induced Investment-Led Growth,"
Economia Internazionale / International Economics,
Camera di Commercio di Genova, vol. 61(2-3), pages 507-537.
- Baldwin, Richard & Seghezza, Elena, 1996. "Testing for Trade-induced Investment-led Growth," CEPR Discussion Papers 1331, C.E.P.R. Discussion Papers.
- Richard E. Baldwin & Elena Seghezza, 1996. "Testing for Trade-Induced Investment-Led Growth," NBER Working Papers 5416, National Bureau of Economic Research, Inc.
- Wonnacott, Ronald J, 1996. "Free-Trade Agreements: For Better or Worse?," American Economic Review, American Economic Association, vol. 86(2), pages 62-66, May.
- Levine, Ross & Renelt, David, 1992.
"A Sensitivity Analysis of Cross-Country Growth Regressions,"
American Economic Review,
American Economic Association, vol. 82(4), pages 942-63, September.
- Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series 609, The World Bank.
- Padamja Khandelwal, 2004. "COMESA and SADC: Prospects and Challenges for Regional Trade Integration," IMF Working Papers 04/227, International Monetary Fund.
- Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas: A Case Study of the Impact on Bangladesh," IMF Working Papers 04/108, International Monetary Fund.
- Sophie Chauvin & Guillaume Gaulier, 2002. "Regional Trade Integration in Southern Africa," Working Papers 2002-12, CEPII research center.
- Jean-Jacques Hallaert, 2008. "How does a domestic tax reform effect protection against imports? The case of the Republic of Madagascar," IMF Working Papers 08/151, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.