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Impacts of Service Sector Policy Reform:CGE model Analysis based on Sri Lanka

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  • Pallegedara, Asankha

Abstract

This paper investigates the macroeconomic effects of services sector reform policies using two computable general equilibrium models of Sri Lankan economy. First model assumes perfect competitive market and second one assumes monopoly supplier economy. Both models have been calibrated using Sri Lanka’s social accounting matrix currently available. Impacts of both services sector production tax reduction and import tariff increase have been simulated. Simulation results imply that reduction of services sector production tax is better than increase of import tariff in both perfect competition case and monopoly supplier case.

Suggested Citation

  • Pallegedara, Asankha, 2010. "Impacts of Service Sector Policy Reform:CGE model Analysis based on Sri Lanka," MPRA Paper 30603, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30603
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    References listed on IDEAS

    as
    1. Brown, Martin & Maurer, Maria Rueda & Pak, Tamara & Tynaev, Nurlanbek, 2009. "The impact of banking sector reform in a transition economy: Evidence from Kyrgyzstan," Journal of Banking & Finance, Elsevier, vol. 33(9), pages 1677-1687, September.
    2. Gooroochurn, Nishaal & Milner, Chris, 2005. "Assessing Indirect Tax Reform in a Tourism-Dependent Developing Country," World Development, Elsevier, vol. 33(7), pages 1183-1200, July.
    3. Ansari, Mohammed I., 1995. "Explaining the service sector growth: An empirical study of India, Pakistan, and Sri Lanka," Journal of Asian Economics, Elsevier, vol. 6(2), pages 233-246.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Sri Lanka Services sector; Production Tax; Import tariff; CGE model;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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