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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. Decaluwé, Bernard & Dumont, Jean-Christophe & Savard, Luc, 2000. "Measuring Poverty and Inequality in a Computable General Equilibrium Model," Cahiers de recherche 9926, Université Laval - Département d'économique.
    2. Luc Savard, 2004. "Poverty and Inequality Analysis within a CGE Framework: a Comparative Analysis of the Representative Agent and Micro-Simulation Approaches," Cahiers de recherche 0412, CIRPEE.
    3. Reimer, Jeffrey J., 2002. "Estimating the poverty impacts of trade liberalization," Policy Research Working Paper Series 2790, The World Bank.
    4. Winters, L Alan, 2000. "Trade, Trade Policy and Poverty: What Are The Links?," CEPR Discussion Papers 2382, C.E.P.R. Discussion Papers.
    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).
    6. Cororaton, Caesar B., 2003. "Analysis of Trade Reforms, Income Inequality and Poverty Using Microsimulation Approach: The Case of the Philippines," Discussion Papers DP 2003-09, Philippine Institute for Development Studies.
    7. James B. Davies, 2004. "Microsimulation, CGE and Macro Modelling for Transition and Developing Economies," WIDER Working Paper Series DP2004-08, World Institute for Development Economic Research (UNU-WIDER).
    8. 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.
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Nesongano, Talent, 2022. "Analysis of the Impact of Trade Liberalization on the Zimbabwean Economy: A case of the African Continental Free Trade Area (AfCFTA)," Conference papers 333399, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. 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.

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