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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3237

Title: THE ECONOMY WIDE IMPACT OF COMESA FTA ON ETHIOPIA: A RECURSIVE DYNAMIC CGE MODEL
Authors: MUSSIE, MINDAYE
Advisors: Dr.Fantu Guta
Keywords: Recursive dynamic CGE model, COMESA FTA, import tariff redu
Copyright: Jun-2011
Date Added: 30-Jun-2012
Publisher: AAU
Abstract: This study examines the economy wide impact of COMESA FTA on Ethiopia. The analysis is made based on Ethiopian social accounting matrix (SAM) of 2005/06 constructed by EDRI. The study has utilized a recursive dynamic CGE model. The model is simulated for an import tariff reduction on different sectors using three different scenarios. The main findings of the analysis are: in the first scenario, removal of import tariff on agriculture and non agricultural sector results in an increase of consumption expenditure of households, commodity output and GDP. On the other hand, government revenue, price of import and price of export declined. Moreover, domestic activity has mixed outcomes. There is some trade creation but no trade diversion effects induced by the tariff reduction. . Mean while, under the second scenario removal of import tariff on agriculture sector only has no impact on Ethiopian economy. Furthermore, the removal of import tariff from non agricultural sector in the third scenario is resulted in similar outcomes as that of the first scenario
Description: A project Submitted to the School of Graduate Studies of Addis Ababa University in partial Fulfillment of requirement for the Degree of Master of Arts in Ec
URI: http://hdl.handle.net/123456789/3237
Appears in:Thesis - Economics

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