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Short‐run Effects of Tariff Reform in Zimbabwe: Applied General Equilibrium Analysis

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Abstract

This paper applies a short‐run computable general equilibrium model for Zimbabwe to analyse how tariff reform could have modified the effects of the actual trade liberalisation that took place in the 1990s. This is important because the trade liberalisation removed quantitative restrictions but left tariff rates intact. The results show that tariffs on intermediates have held back production in traded sectors. Thus, the nature of the trade reform taken contributed to more deindustrialisation than necessary. The results also show the tradeoff with respect to the fiscal balance, which points to the need to ensure that an alternative tax system is in place before removing customs tax revenue.

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  • Ramos Mabugu, 2001. "Short‐run Effects of Tariff Reform in Zimbabwe: Applied General Equilibrium Analysis," Journal of African Economies, Centre for the Study of African Economies, vol. 10(2), pages 174-190.
    • Handle: RePEc:oup:jafrec:v:10:y:2001:i:2:p:174-190.
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    File URL: http://hdl.handle.net/10.1093/jae/10.2.174
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    Cited by:

    1. Lucy Rees & Rod Tyers, 2004. "On the Robustness of Short Run Gains from Trade Reform," CEPR Discussion Papers 474, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    2. Margaret Chitiga & Tonia Kandiero & Ramos Mabugu, 2005. "Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe," Working Papers MPIA 2005-01, PEP-MPIA.
    3. Jean, Sebastien & Laborde, David & Martin, Will, 2005. "Sensitive Products: Selection and Implications for Agricultural Trade Negotiations," Conference papers 331439, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Ballard, Charles L. & Goddeeris, John H., 2004. "First, Do No Harm: Welfare Gains and Welfare Losses from Environmental Taxation," Conference papers 331257, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Julius Mukarati & Itumeleng P. Mongale & Godswill Makombe, 2020. "Land redistribution and the South African economy," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 46-54.
    6. Kowero, G. & Mabugu, R., 2006. "Macroeconomic policies and industrial wood processing and trade in Zimbabwe," Forest Policy and Economics, Elsevier, vol. 8(1), pages 22-34, January.

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