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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3204

Title: EFFECTS OF TARIFF REDUCTION AND TAX REPLACEMENTS ON GROWTH, POVERTY AND INCOME DISTRIBUTION IN ETHIOPIA: A CGE-MICROSIMULATION ANALYSIS
Authors: ALEKAW, KEBEDE
Advisors: Dr. Tadele Ferede
Keywords: economics
Copyright: Jun-2011
Date Added: 26-Jun-2012
Publisher: AAU
Abstract: This study utilizes a 15-sector static CGE model of International Food Policy Research Institute for Ethiopian economy. The study also used the Distributive Analysis (DAD) software to compute poverty and inequality indicators. Increasing domestic tax rates (that is, replacing the tariff revenue lost with either direct tax or indirect tax) increased exports of most agricultural commodities and industrial imports causing the domestic industries to contract in production and employment. Effects on GDP, consumer’s welfare, factor rewards, poverty and income distribution are mixed. Replacing tariff by direct tax improved all these variables marginally by increasing changes in factor rewards and decreasing the price level (CPI). On the other hand, replacing tariff by indirect tax has worsening effect by deteriorating the changes in factor rewards and increasing the relative prices (CPI).
Description: A Project Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Arts in Economics (Applied Trade Policy Analysis
URI: http://hdl.handle.net/123456789/3204
Appears in:Thesis - Economics

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