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Trade, growth, and poverty in Zambia: Insights from a dynamic GE model

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  • Buffie, Edward F.
  • Atolia, Manoj

Abstract

We analyze how trade policy and aid affect poverty and economic development in a dynamic optimizing model that features a full array of imports (intermediates, consumer goods, and capital goods), transport and distribution costs, sector-specific capital, public investment in social and physical infrastructure, learning externalities, and a dualistic labor market. Our main finding is that policy packages that combine an escalated structure of protection with an escalated structure of export promotion score best; there is no support for the view that free trade or a low uniform tariff is approximately optimal.

Suggested Citation

  • Buffie, Edward F. & Atolia, Manoj, 2012. "Trade, growth, and poverty in Zambia: Insights from a dynamic GE model," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 211-229.
  • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:2:p:211-229
    DOI: 10.1016/j.jpolmod.2011.07.011
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Mario Holzner, 2013. "Impact of Croatian EU Accession on Regional Trade Patterns," wiiw Policy Notes 10, The Vienna Institute for International Economic Studies, wiiw.
    2. van Ruijven, Bas J. & O’Neill, Brian C. & Chateau, Jean, 2015. "Methods for including income distribution in global CGE models for long-term climate change research," Energy Economics, Elsevier, vol. 51(C), pages 530-543.
    3. Aykut Mert Yakut & Ebru Voyvoda, 2017. "Intertemporal CGE Analysis of Income Distribution in Turkey," ERC Working Papers 1703, ERC - Economic Research Center, Middle East Technical University, revised Feb 2017.

    More about this item

    Keywords

    Poverty; Aid; Trade liberalization; Infrastructure;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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