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Trade Reforms and Horizontal Inequalities: The Case of Uganda

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  • John Mary Matovu

    () (Economic Policy Research Centre, Kampala, Uganda.)

Abstract

Uganda has undertaken various trade policy reforms over the past 15 years. The size and dispersion of tariffs have been substantially reduced; export taxes have been abolished; quantitative trade restrictions and non-tariff barriers to trade (such as trade licensing, prohibitions/bans, quotas, administrative pricing and foreign exchange rate controls) have been greatly reduced. Using a dynamic computable general equilibrium model, we implement simulations reflecting the various trade reforms that have been undertaken. Broadly, we find that reducing tariffs would have an impact on reducing poverty especially in the Northern and Eastern regions. All trade reforms would have an impact on reducing inequality within the regions, although this impact is found to be generally small.Depuis une quinzaine d′années, l′Ouganda a entrepris diverses réformes de politiques commerciales. La taille et dispersion des tarifs douaniers ont été considérablement réduites, les taxes à l′exportation ont été supprimées, les restrictions quantitatives aux échanges ainsi que les obstacles non tarifaires au commerce (telles que les licences commerciales, les prohibitions et interdictions, les contingents, la tarification administrative et les contrôles des taux de change) ont été considérablement réduits. A l′aide d′un modèle dynamique d′EGC, nous conduisons des simulations reflétant les différentes réformes commerciales entreprises. Globalement, nous constatons qu′une baisse des tarifs douaniers aurait un impact sur la réduction de la pauvreté, particulièrement dans les régions du Nord et de l′Est. Même si cet effet resterait modeste, toute réforme commerciale contribuerait à réduire les inégalités au sein des régions.

Suggested Citation

  • John Mary Matovu, 2012. "Trade Reforms and Horizontal Inequalities: The Case of Uganda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 24(5), pages 753-776, December.
  • Handle: RePEc:pal:eurjdr:v:24:y:2012:i:5:p:753-776
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