IDEAS home Printed from
   My bibliography  Save this paper

Macro-Economic Policy, Export Competitiveness and Poverty in Kenya: A General Equilibrium Analysis


  • Tyler, Godfrey J.


A Computable General Equilibrium model based on a Social Accounting Matrix for Kenya is used to simulate the effects of a 10 percent devaluation combined with a more progressive tax regime and elimination of indirect industrial taxes. For each policy simulation two specifications for the labour markets are adopted, the first assuming abundant supplies of labour at given nominal wages and the second assuming fixed supplies so that wages are determined endogenously. These crucially affect the results. The poor are better off under both scenarios; but only under the first (preferred) assumption does the policy also result in a large boost to GDP, to exports, particularly agricultural exports and to a dramatic improvement in the balance of payments, while maintaining real investment and essential government expenditure.

Suggested Citation

  • Tyler, Godfrey J., 1997. "Macro-Economic Policy, Export Competitiveness and Poverty in Kenya: A General Equilibrium Analysis," 1997 Occasional Paper Series No. 7 198049, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaaeo7:198049
    DOI: 10.22004/ag.econ.198049

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Balassa, Bela, 1990. "Incentive policies and export performance in sub-Saharan Africa," World Development, Elsevier, vol. 18(3), pages 383-391, March.
    2. Helleiner, Gerald K., 1987. "Stabilization, adjustment, and the poor," World Development, Elsevier, vol. 15(12), pages 1499-1513, December.
    3. Demery, Lionel & Addison, Tony, 1987. "Stabilization policy and income distribution in developing countries," World Development, Elsevier, vol. 15(12), pages 1483-1498, December.
    Full references (including those not matched with items on IDEAS)


    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:ags:iaaeo7:198049. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.