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Ouverture commerciale et croissance économique en RD Congo : une analyse en équilibre général calculable
[Trade openness and economic growth in the DR Congo : an analysis in a computable general equilibrium framework]

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  • UMBA, Gilles

Abstract

This paper analyzes the effects of the trade openness on the economic growth in the Democratic Republic of Congo. The empirical analysis conducted diverged on the actual effects of such measures on the behavior of macroeconomic variables of a country. Most see similar policies a catalyst for growth while others see them as detrimental to production and competitiveness. In order to grasp the different effects of trade opening, this work considers an analysis in a framework of a standard dynamic general equilibrium from Decaluwé and Al. (2010) by simulating a gradual lowering of tariffs between 2015 and 2029. The simulations conducted however reveals a net negative effect on economic growth effects of trade opening. However, this negative impact could be absorbed by continued structural reforms to improve competitiveness and diversify the economy.

Suggested Citation

  • UMBA, Gilles, 2013. "Ouverture commerciale et croissance économique en RD Congo : une analyse en équilibre général calculable [Trade openness and economic growth in the DR Congo : an analysis in a computable general eq," MPRA Paper 66092, University Library of Munich, Germany, revised 13 Aug 2015.
  • Handle: RePEc:pra:mprapa:66092
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    References listed on IDEAS

    as
    1. Blomström, Magnus & Kokko, Ari, 1997. "Regional Integration and Foreign Direct Investment," CEPR Discussion Papers 1659, C.E.P.R. Discussion Papers.
    2. John Dunning, 2001. "The Eclectic (OLI) Paradigm of International Production: Past, Present and Future," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(2), pages 173-190.
    3. Scott L. Baier & Jeffrey H. Bergstrand & Peter Egger, 2007. "The New Regionalism: Causes and Consequences," Economie Internationale, CEPII research center, issue 109, pages 9-29.
    4. Blomstrom, Magnus & Kokko, Ari, 1997. "Regional integration and foreign direct investment : a conceptual framework and three cases," Policy Research Working Paper Series 1750, The World Bank.
    5. Jaya Prakash Pradhan, 2010. "Strategic Asset-Seeking Activities of Emerging Multinationals: Perspectives of Foreign Acquisitions by Indian Pharmaceutical MNEs," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(2).
    6. repec:idb:brikps:80602 is not listed on IDEAS
    7. repec:idb:brikps:6512 is not listed on IDEAS
    8. Bernard Decaluwé & John Cockburn & Fatou Cissé & Nabil Annabi, 2008. "Libéralisation commerciale, croissance et pauvreté au Sénégal : une analyse à l’aide d’un MEGC microsimulé dynamique," Économie et Prévision, Programme National Persée, vol. 186(5), pages 117-131.
    9. Unknown, 2001. "General Discussion," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16839, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Openness; economic growth; general equilibrium models;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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