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Towards an explicit modeling of trade facilitation in CGE models: evidence from Egypt

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  • Zaki, Chahir

Abstract

This paper develops a dynamic computable general equilibrium (CGE) model incorporating trade facilitation aspects. This paper’s contributions are twofold: theoretical and empirical. First, this paper attempts to model trade facilitation explicitly in a dynamic CGE model applied. On the empirical side, I estimate, not assume, the tariff equivalent of red tape and related procedures at sectoral level. I use the ad valorem tariff equivalents of time to import and to export that have been estimated in a companion paper and I take into account the cost of such a process. To do so, I modify the Exter model that is calibrated on the Egyptian social accounting matrix of 2000/2001. My main findings show that, when trade facilitation is modeled precisely, i.e. by taking into account its cost as well as the tariff equivalents of its aspects, the impact of such a process is reduced. Meanwhile, its impact remains higher than trade liberalization. Moreover, some sectors witness a significant expansion more than others, especially processed food, garments and high value added products.

Suggested Citation

  • Zaki, Chahir, 2010. "Towards an explicit modeling of trade facilitation in CGE models: evidence from Egypt," MPRA Paper 23353, University Library of Munich, Germany, revised 14 Jun 2010.
  • Handle: RePEc:pra:mprapa:23353
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    Cited by:

    1. Jean-Christophe Bureau & Sébastien Jean, 2013. "International Agricultural Trade and Negotiations : Coping with a New Landscape [Commerce et négociations agricoles commerciales: s'ajuster au nouvel environnement]," Working Papers hal-01592099, HAL.
    2. Valery Leonidovich Makarov & Albert Raufovich Bakhtizin & Elena Davidovna Sushko & Maria Alekseevna Burilina, 0. "Development of Mathematical Model for a Quantitative Assessment of Consequences of Illegal Financial Operations," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management..
    3. Tchouamou Njoya, Eric, 2020. "An analysis of the tourism and wider economic impacts of price-reducing reforms in air transport services in Egypt," Research in Transportation Economics, Elsevier, vol. 79(C).
    4. Badri Narayanan & Sachin Sharma & Mohammad Razzaque, 2016. "Trade Facilitation in the Commonwealth: An Economic Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(3), pages 305-336, August.
    5. Shahrokhi Shahraki, Hamed & Bachmann, Chris, 2019. "Integrating a Computable General Equilibrium model with empirically calibrated transportation models for border crossing investment analysis," Research in Transportation Economics, Elsevier, vol. 78(C).
    6. Chahir Zaki, 2011. "Assessing the Global Effect of Trade Facilitation: Evidence from the MIRAGE Model," Working Papers 659, Economic Research Forum, revised 12 Jan 2011.
    7. Jean-Pierre Chauffour & Bernard M., 2013. "Harnessing Trade Opportunities in the Middle East and North Africa," RSCAS Working Papers PP2013/07, European University Institute.

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    More about this item

    Keywords

    CGE; Trade facilitation; Egypt;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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