Trade Policy and Poverty in Benin: a General Equilibrium Analysis
AbstractEconomic and financial crisis in Benin since 1980s led the government to embark on a process of economic reforms in 1991. These reforms sought to remedy the fiscal and trade imbalances in order to accelerate economic growth. Trade policy reform was given priority. Import bans and quotas were eliminated, import duties abolished and a compensatory tax on commodities sold in the domestic market instituted. This study analyzes the effects of the trade policy reforms using a computable general equilibrium (CGE) model and household survey data. Results show that these reforms are more beneficial to households in urban areas, but contribute to worsening poverty conditions of the most poor in rural areas. If liberalization policies target better strategies aimed at fighting poverty, or at least not deteriorating the situation, they need to be designed in a way that they do not worsen the poverty conditions of the most destitute in society.
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Bibliographic InfoPaper provided by PEP-MPIA in its series Working Papers MPIA with number 2008-14.
Date of creation: 2008
Date of revision:
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More information through EDIRC
CGE; trade; poverty; Benin;
Find related papers by JEL classification:
- D6 - Microeconomics - - Welfare Economics
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
- 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
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-12-01 (Africa)
- NEP-ALL-2008-12-01 (All new papers)
- NEP-CMP-2008-12-01 (Computational Economics)
- NEP-DEV-2008-12-01 (Development)
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.:
- Adelman, Irma & Robinson, Sherman, 1989. "Income distribution and development," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 19, pages 949-1003 Elsevier.
- Savard, Luc & Adjovi, Épiphane, 1998. "Externalités de la santé et de l’éducation et bien-être : un modèle d’équilibre général calculable appliqué au Bénin," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(3), pages 523-560, septembre.
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