Preferential Trade Agreements Between the Monetary Community of Central Africa and the European Union: Stumbling or Building Blocks? A General Equilibrium Approach

Ngeleza, Guyslain K.; Muhammad, Andrew

doi:10.1002/jid.1838

Cited by 4 publications

(4 citation statements)

References 34 publications

(55 reference statements)

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“…While welfare improves, there is an observed increase in foreign debt over the long term. Similarly, Ngeleza and Muhammad (2011), using a CGE approach in a developing country context, found positive impacts of trade liberalization on welfare. Studies also indicate that full tariff liberalization reduces overall poverty, with wealthier households benefiting more (Blomqvist & McMahon, 1986;Nahar & Siriwardana, 2013).…”

Section: G Ov Er N I Ng Pol Ic Y F R a M Ewor Kmentioning

confidence: 89%

“…Similarly, Ngeleza and Muhammad (2011), using a CGE approach in a developing country context, found positive impacts of trade liberalization on welfare. Studies also indicate that full tariff liberalization reduces overall poverty, with wealthier households benefiting more (Blomqvist & McMahon, 1986;Nahar & Siriwardana, 2013). Improved welfare is associated with reduced import costs and increased access to imports following tariff liberalization.…”

Section: G Ov Er N I Ng Pol Ic Y F R a M Ewor Kmentioning

confidence: 89%

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Impact of tariff liberalization on economic and social benefits: Computable general equilibrium application to Kenya

Mwatu,

Nafula,

Karanja

2024

Politics & Policy

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This study employed computable general equilibrium policy simulations to examine the impact of import tariff liberalization on socioeconomic outcomes including living standards, cost of living, gross domestic product (GDP) from expenditure, total investment expenditure, intermediate input demand, output, value‐added, tariff revenue, sales tax revenue, indirect tax revenue, direct income tax revenue, factor income tax revenue, and factor demand. Findings from the simulations have policy implications touching on a need to embrace reciprocal tariff liberalization under agreements like strategic trade and investment partnerships and economic partnership agreements as they are associated with welfare gains, reduction in cost of living, and GDP growth. Targeted policy incentives could be directed to specific domestic sectors since tariff liberalization has negative impacts on investment expenditure. Incentives regarding intermediate inputs should be directed to the manufacturing and services sectors for liberalization of agrifood commodities. Targeted policy incentives should be directed to the manufacturing and services sectors which experience decrease in output with tariff reductions. Liberalization of manufactured commodities should be accompanied by value‐added incentives directed to the agrifood and home production–home consumption sectors. For the liberalization of manufactured commodities, targeted policy incentives should be directed to the services sector which experiences job losses while for the liberalization of tariffs on imports of agrifood commodities, targeted policy incentives should be directed to the agrifood and the home production–home consumption sectors, which also lose jobs. These targeted policy incentives could support industrial activity and compensate for revenue loss, especially from customs duties.Related ArticlesGruber, Lloyd. 2013. “Trade, Growth, Poverty, and Politics: Toward a Unified Theory.” Politics & Policy 41(5): 723–64. https://doi.org/10.1111/polp.12034.Onyango, Gedion, and Japheth Otieno Ondiek. 2022. “Open Innovation During the COVID‐19 Pandemic Policy Responses in South Africa and Kenya.” Politics & Policy 50(5): 1008–31. https://doi.org/10.1111/polp.12490.Soto, Gloria. 2012. “Environmental Impact of Agricultural Trade Liberalization under NAFTA.” Politics & Policy 40(3): 471–91. https://doi.org/10.1111/j.1747‐1346.2012.00354.x.

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Section: G Ov Er N I Ng Pol Ic Y F R a M Ewor Kmentioning

confidence: 89%

Section: G Ov Er N I Ng Pol Ic Y F R a M Ewor Kmentioning

confidence: 89%

Impact of tariff liberalization on economic and social benefits: Computable general equilibrium application to Kenya

Mwatu,

Nafula,

Karanja

2024

Politics & Policy

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“…It indicates instead that the income risk channel should be considered seriously in exercises evaluating the overall gains from trade. Crude oil, timber, manganese, uranium 76.24% -Source: Ngeleza and Muhammad (2009). 1993-1998 1999-2005 2006-2013 1993-1998 1999-2005…”

Section: Discussionmentioning

confidence: 99%

Openness to International Trade and Income Risk in Cemac

Mathurin¹,

Ablinkaye²

2015

JEDS

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In this paper, the effects of international trade on income risk are investigated. Arguing that the interaction between international trade and his different channels (export share and import penetration) plays an important role in explaining labour income risk, we employ a sample of 6 central Africa's countries covering the period 1993-2013, in aggregate level, to estimate time-varying individual income risk at the sector level. The relationship between trade and labour income risk is analyzed by combining our estimates of persistent labour income risk with measures of exposure to international trade. It is established that export share have a statistically significant association with labour income risk in the CEMAC countries. Our findings are robust to the econometric techniques used, to the inclusion of a wide range of control variables.

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“…Congo is a member of the Economic and Monetary Community of Central Africa (CEMAC). 2 For example, Ngeleza and Muhammad (2009) consider D.R. Congo as a member of CEMAC.…”

Section: The Eu-sadc Economic Partnership Agreementsmentioning

confidence: 99%

SADC Trade with the European Union from a Preferential to a Reciprocal Modality

Osman

2014

South African J Economics

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This study employs a global computable general equilibrium (CGE) model to examine the potential impacts of the Economic Partnership Agreements (EPAs) between the European Union (EU) and the Southern African Development Community (SADC). The simulation results suggest that a comprehensive EPA scenario is welfare-improving for many SADC members. SADC preferential access to the EU markets is the key source for the prospective welfare and terms of trade gains. Overall, SADC production structures become more concentrated in export-oriented sectors. These structural changes are accompanied by a high degree of adjustment and substantial fiscal losses. JEL classifications: C68, F15, F17, O55

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Preferential Trade Agreements Between the Monetary Community of Central Africa and the European Union: Stumbling or Building Blocks? A General Equilibrium Approach

Cited by 4 publications

References 34 publications

Impact of tariff liberalization on economic and social benefits: Computable general equilibrium application to Kenya

Impact of tariff liberalization on economic and social benefits: Computable general equilibrium application to Kenya

Openness to International Trade and Income Risk in Cemac

SADC Trade with the European Union from a Preferential to a Reciprocal Modality

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