The SADC region and EPA/EBAI – trade balance analysis
AbstractThis paper investigates the potential trade balance outcomes of the EPA/EBAI policies in the SADC region using the GTAP7 model and database. The analysis of these policies therefore make conclusion on SADC member states’ changes in trade balance overall, per commodity groups and on overall welfare outcomes as a result of these policies. The study has found that although the EPA/EBAI initiative policies will potentially result in overall welfare gain in the SADC region this welfare gain will only be 6% of the EU27. Analysis of trade balance outcome reveals that the SADC ACP region will suffer a negative trade balance of US$1596.8 million with the EU on the other hand having a positive trade balance of US$105.61 million. Since a positive trade balance is important for sustainable development of nations, these results once again throw into doubt the potential sustainable economic growth benefits of these policies to ACP countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31992.
Date of creation: 04 Jul 2011
Date of revision:
Key words: Trade Balance; Welfare; EPA/EBAI Policies; Sustainable Development; Sustainable Economic Growth;
Other versions of this item:
- Mphumuzi A. Sukati, 2012. "The SADC region and EPA/EBAI - trade balance analysis," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 4(2), pages 136-154.
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania
- E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
- A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
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- Chris Milner & Oliver Morrissey & Andrew McKay, 2005. "Some Simple Analytics of the Trade and Welfare Effects of Economic Partnership Agreements," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(3), pages 327-358, September.
- Alexander Keck & Roberta Piermartini, 2008. "The Impact of Economic Partnership Agreements in Countries of the Southern African Development Community," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 17(1), pages 85-130, January.
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