IDEAS home Printed from https://ideas.repec.org/p/crs/wpaper/2009-23.html
   My bibliography  Save this paper

Rethinking the Redistribution Effects of Trade Liberalization in Egypt : A Microsimulation Analysis

Author

Listed:
  • Rana HENDY

    (Crest)

  • Chahir ZAKI

    (Crest)

Abstract

This paper aims at evaluating the liberalization policies effects on inequality in Egyptwith respect to gender, region and qualification level. No previous studies in Egypt,to our best knowledge, have used the Microsimulation analysis which is a good toolthat allows such an evaluation and determines the redistribution aspects of macropolicies. The latter consists of linking macroeconomic changes to the micro level ofthe economy i.e. the individual level. A Computable General Equilibrium model(CGE) is first estimated for a maximum tariff rate of 10%. And, wages andemployment changes resulted from the CGE are replicated, in a second stage, intoour micro data. Results show that liberalization policies have important impacts oninequalities among the Egyptian population in general. Inequality has decreasedamong males and females as well as among different regions of the Egyptian societybut has increased among high-skilled and low-skilled workers. Results of the presentresearch have important policy implications that have to be considered.

Suggested Citation

  • Rana HENDY & Chahir ZAKI, 2009. "Rethinking the Redistribution Effects of Trade Liberalization in Egypt : A Microsimulation Analysis," Working Papers 2009-23, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2009-23
    as

    Download full text from publisher

    File URL: http://crest.science/RePEc/wpstorage/2009-23.pdf
    File Function: Crest working paper version
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mohamed Abdelbasset Chemingui & Chokri Thabet, 2008. "Agricultural Trade Liberalization and Poverty in Tunisia: Micro-simulation in a General Equilibrium Framework," Working Papers MPIA 2008-03, PEP-MPIA.
    2. Rutherford, Thomas F. & Rutstrom, E.E. & Tarr, David, 1993. "Morocco's free trade agreement with the European community : a quantitative assessment," Policy Research Working Paper Series 1173, The World Bank.
    3. Paolo Epifani & Gino Gancia, 2008. "The Skill Bias of World Trade," Economic Journal, Royal Economic Society, vol. 118(530), pages 927-960, July.
    4. Peter Haan, 2004. "Discrete Choice Labor Supply: Conditional Logit vs. Random Coefficient Models," Discussion Papers of DIW Berlin 394, DIW Berlin, German Institute for Economic Research.
    5. Colombo, Giulia, 2008. "Linking CGE and Microsimulation Models: A Comparison of Different Approaches," ZEW Discussion Papers 08-054, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Luc Savard, 2003. "Poverty and Income Distribution in a CGE-Household Micro-Simulation Model: Top-Down/Bottom Up Approach," Cahiers de recherche 0343, CIRPEE.
    7. François Bourguignon & Anne-Sophie Robilliard & Sherman Robinson, 2003. "Representative versus real households in the macro-economic modeling of inequality," Working Papers DT/2003/10, DIAL (Développement, Institutions et Mondialisation).
    8. Denise Eby Konan & Keith E Maskus, 1997. "A Computable General Equilibrium Analysis of Egyptian Trade Liberalization Scenarios," Working Papers 199701, University of Hawaii at Manoa, Department of Economics.
    9. 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.
    10. repec:dau:papers:123456789/5130 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    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:crs:wpaper:2009-23. 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: (Sri Srikandan). General contact details of provider: http://edirc.repec.org/data/crestfr.html .

    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.