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The impact of tariff removal on poverty in Zimbabwe: A computable general equilibrium microsimulation

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  • Margaret Chitiga
  • Ramos Mabugu
  • Tonia Kandiero

Abstract

The paper uses a microsimulation computable general equilibrium (CGE) model to study the impact on poverty of a complete removal of tariffs in Zimbabwe. The model incorporates 14,006 households derived from the 1995 Poverty Assessment Study Survey. This paper's novelty is that it is one among a small group of papers that incorporates individual households in the CGE model as opposed to having representative households. Using individual households allows for a comprehensive analysis of poverty. The complete removal of tariffs favours exporting sectors. Poverty falls in the economy while inequality hardly changes. The results differ between rural and urban areas.

Suggested Citation

  • Margaret Chitiga & Ramos Mabugu & Tonia Kandiero, 2007. "The impact of tariff removal on poverty in Zimbabwe: A computable general equilibrium microsimulation," Journal of Development Studies, Taylor & Francis Journals, vol. 43(6), pages 1105-1125.
  • Handle: RePEc:taf:jdevst:v:43:y:2007:i:6:p:1105-1125
    DOI: 10.1080/00220380701466666
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    References listed on IDEAS

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    1. Luc Savard, 2005. "Poverty and Inequality Analysis within a CGE Framework: A Comparative Analysis of the Representative Agent and Microsimulation Approaches," Development Policy Review, Overseas Development Institute, vol. 23(3), pages 313-331, May.
    2. Davies, James B., 2004. "Microsimulation, CGE and Macro Modelling for Transition and Developing Economies," WIDER Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    3. Reimer, Jeffrey J., 2002. "Estimating the Poverty Impacts of Trade Liberalization," GTAP Working Papers 1163, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    4. Ramkishen Rajan & Graham Bird, 2002. "Trade Liberalization and Poverty: Where Do We Stand?," Centre for International Economic Studies Working Papers 2002-30, University of Adelaide, Centre for International Economic Studies.
    5. Bautista, Romeo M. & Lofgren, Hans & Thomas, Marcelle, 1998. "Does trade liberalization enhance income growth and equity in Zimbabwe?: the role of complimentary policies," TMD discussion papers 32, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Kebede W. Sindu & Belay Fekadu & Dejene Aredo, 2016. "Impact of Trade Liberalization on Poverty in Ethiopia: A Computable General Equilibrium Microsimulation," International Journal of Microsimulation, International Microsimulation Association, vol. 9(1), pages 109-133.
    2. Saeed Solaymani & Mehdi Shokrinia, 2016. "Economic and environmental effects of trade liberalization in Malaysia," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 101-120, October.
    3. Binjian, Binjian & Sakamoto, Hiroshi, 2013. "Market Reform and Income Distribution in China : A CGE–Microsimulation Approach," AGI Working Paper Series 2013-13, Asian Growth Research Institute.
    4. Frank Barry, Patrick Honohan and Tara McIndoe, Trinity College Dublin, 2009. "Postcolonial Ireland And Zimbabwe: Stagnation Before Convergence," The Institute for International Integration Studies Discussion Paper Series iiisdp291, IIIS.

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