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Improving Trade and Transport Services in Tanzania: A General Equilibrium Approach

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Author Info
Elina Eskola (Department of Economics, University of Copenhagen)
Abstract

The study uses a computable general equilibrium (CGE) approach to simulate the welfare gains of improving trade and transport services in Tanzania up to the year 2015. The model takes into account the regional differences in trading margins and the different production patterns of commercial and subsistence producers. The results show that substantial economic growth can be achieved by alleviating the existing bottle necks in marketing. The regional growth patterns of production after market improvement favour the more isolated and often poorer regions, leading to decreased regional inequality over time. The main beneficiaries of the policy change are the rural poor whose income grows faster than the income of the wealthier urban dwellers. The results suggest, that if sufficient resources and political commitment to improving trade and transport sectors can be mobilised, the economic performance can be enhanced to reach the Millennium Development Goals by 2015.

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Publisher Info
Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 05-22.

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Length: 45 pages
Date of creation:
Date of revision: Nov 2005
Handle: RePEc:kud:kuiedp:0522

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Related research
Keywords: computable general equilibrium (CGE); regional growth; commercialisation; infrastructure; trade; pro-poor growth; Tanzania; millennium development goals;

Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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References listed on IDEAS
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.:
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Full references

Cited by:
(explanations, 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.)

  1. Briones, Roehlano M., 2009. "Impact Assessment of National and Regional Policies Using the Philippine Regional General Equilibrium Model (PRGEM)," Discussion Papers DP 2009-03, Philippine Institute for Development Studies. [Downloadable!]
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