Rethinking the Redistribution Effects of Trade Liberalization in Egypt: A Microsimulation Analysis
AbstractThis paper aims at evaluating the liberalization policies effects on inequality in Egypt with respect to gender, region and qualification level. No previous studies in Egypt, to our best knowledge, have used the Microsimulation analysis which is a good tool that allows such an evaluation and determines the redistribution aspects of macro policies. The latter consists of linking macroeconomic changes to the micro level of the economy i.e. the individual level. A Computable General Equilibrium model (CGE) is first estimated for a maximum tariff rate of 10%. And, wages and employment changes resulted from the CGE are replicated, in a second stage, into our micro data. Results show that liberalization policies have important impacts on inequalities among the Egyptian population in general. Inequality has decreased among males and females as well as among different regions of the Egyptian society but has increased among high-skilled and low-skilled workers. Results of the present research have important policy implications that have to be considered.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 23354.
Date of creation: Dec 2009
Date of revision:
Trade liberalization; Egypt; CGE;
Other versions of this item:
- Rana HENDY & Chahir ZAKI, 2009. "“Rethinking the Redistribution Effects of Trade Liberalization in Egypt : A Microsimulation Analysis”," Working Papers, Centre de Recherche en Economie et Statistique 2009-23, Centre de Recherche en Economie et Statistique.
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
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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