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The impacts of the Africa Continental Free Trade Area on the Kenyan economy

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Abstract

The study explores the impacts of establishing the African Continental Free Trade Area (AfCFTA) on the economy of Kenya. By using a fully disaggregated single-country CGE model (55 commodities, 22 household groups) in combination with a global CGE model, it seeks to offer a detailed characterization of the economic impacts in the country in a number of areas (macroeconomic, sectoral and household welfare). In the context of the pre-existing regional trade agreements that Kenya is part of, it captures the incremental value for the Kenyan economy of the further trade liberalization commitments across the continent as may be agreed in the final AfCFTA text. The combined modeling framework allows to consider the global repercussions of the AfCFTA and especially the interaction effects of the liberalization between the African countries in assessing the implications for Kenya in higher detail, in particular on agricultural commodities and households.

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  • NECHIFOR VOSTINARU Victor & BOYSEN Ole & FERRARI Emanuele & SIMOLA Antti Mikko & NANDELENGA Martin & LAICHENA Joshua & MALOT Kenneth, 2022. "The impacts of the Africa Continental Free Trade Area on the Kenyan economy," JRC Research Reports JRC126957, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc126957
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC126957
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    Keywords

    Africa Continental Free Trade Area; Kenya;

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