Towards an explicit modeling of trade facilitation in CGE models: evidence from Egypt
AbstractThis paper develops a dynamic computable general equilibrium (CGE) model incorporating trade facilitation aspects. This paper’s contributions are twofold: theoretical and empirical. First, this paper attempts to model trade facilitation explicitly in a dynamic CGE model applied. On the empirical side, I estimate, not assume, the tariff equivalent of red tape and related procedures at sectoral level. I use the ad valorem tariff equivalents of time to import and to export that have been estimated in a companion paper and I take into account the cost of such a process. To do so, I modify the Exter model that is calibrated on the Egyptian social accounting matrix of 2000/2001. My main findings show that, when trade facilitation is modeled precisely, i.e. by taking into account its cost as well as the tariff equivalents of its aspects, the impact of such a process is reduced. Meanwhile, its impact remains higher than trade liberalization. Moreover, some sectors witness a significant expansion more than others, especially processed food, garments and high value added products.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 23353.
Date of creation: 10 Apr 2010
Date of revision: 14 Jun 2010
CGE; Trade facilitation; Egypt;
Other versions of this item:
- Chahir Zaki, 2010. "Towards An Explicit Modeling Of Trade Facilitation In Cge Models: Evidence From Egypt," Working Papers 515, Economic Research Forum, revised Apr 2010.
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-26 (All new papers)
- NEP-ARA-2010-06-26 (MENA - Middle East & North Africa)
- NEP-CMP-2010-06-26 (Computational Economics)
- NEP-CWA-2010-06-26 (Central & Western Asia)
- NEP-INT-2010-06-26 (International Trade)
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