IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v5y2025i5d10.1007_s43546-025-00817-8.html
   My bibliography  Save this article

Impact of productivity shock on household welfare in AfCFTA: a GSSA method

Author

Listed:
  • Franck Xavier Signe

    (University of Rennes
    University of Yaounde II, Center)

Abstract

In a bid to improve living standards, the African Union and African Development Bank is encouraging the free movement of goods and productivity via technological innovation. In 2018, it even signed a continental free trade agreement (AfCFTA) between the various member countries, given that these countries do not have the same currency. This study quantitatively analyses the impact of a productivity shock on household welfare in Africa free trade zone (AfCFTA). Using the Generalized Simulation Stochastic Algorithm (GSSA) method and productivity data from the AfCFTA countries, we analyse welfare when there is economic integration and when there is not. The results show that when a country’s productivity level is high, so is the welfare of its population, with or without economic integration. Monetary integration must precede economic integration if the welfare of all households in member countries is to improve. Monetary integration guarantees a fixed parity of exchange rates between member countries and consequently stable or low fluctuating prices. This stability enables individuals to make better forecasts and improve trade.

Suggested Citation

  • Franck Xavier Signe, 2025. "Impact of productivity shock on household welfare in AfCFTA: a GSSA method," SN Business & Economics, Springer, vol. 5(5), pages 1-18, May.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:5:d:10.1007_s43546-025-00817-8
    DOI: 10.1007/s43546-025-00817-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-025-00817-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-025-00817-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Programming models; Economic integration; Welfare; Technological change; Neoclassical economic growth;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:5:y:2025:i:5:d:10.1007_s43546-025-00817-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.