Browsing by Author "Darsene, Yewbdar"

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    The Impact of Economic Partnership Agreement (EPA) And Counter Fiscal Policy Measures For Ethiopia: A Recursive Dynamic Computable General Equilibrium Model
    (Addis Ababa University, 2012-06) Darsene, Yewbdar
    As a Growth and Transformation Plan (GTP), the Ethiopian government has planned to conclude the Economic Partnership Agreement (EPA) with European Union (EU) and joining Common Market for Eastern and Southern Africa- Free Trade Area (COMESA-FTA). Thus, in the study we have shown endeavour to examine the economy-wide effects of concluding those agreements. To attain the stated objectives, a recursive dynamic computable general equilibrium (CGE) model is used as an important analytical tool. As a main data base the model is calibrated with an updated version of 2005/06 Social Accounting Matrix (SAM). There were three individual and two combined simulations. According to the simulation results, following tariff reduction, with exception of investment and government income, almost all of the macroeconomic indicators, sectoral output and welfare indicators have shown improvement. Similarly, in the combined simulation, tariff reduction and direct tax rate adjustment, though the percentage of improvement is lower for some variables all of the variables have recorded a positive change. Unlike the above simulations, the simulation combining tariff reduction together with sales tax rate adjustment has shown a negative change in some of macroeconomic indicators, sectoral output and welfare indicators. In concluding, in those simulations which included sales tax rate adjustment has brought adverse effect on most of the economic variables. Therefore, from the welfare point of view, the implication of our study is that, comparing the two compensating measures, it is beneficial to apply direct tax rate adjustment together with tariff reduction.
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    The Impact of Economic Partnership Agreement (EPA) and Counter Fiscal Policy Measures for Ethiopia: A Recursive Dynamic Computable General Equilibrium Model
    (A.A.U, 2012-06) Darsene, Yewbdar; Hasan, Seyd (Dr)
    As a Growth and Transformation Plan (GTP), the Ethiopian government has planned to conclude the Economic Partnership Agreement (EPA) with European Union (EU) and joining common Market for Eastern and Southern Africa- Free Trade Area (COMESA-FTA). Thus, in the study we have shown endeavor to examine the economy-wide effects of concluding those agreements. To attain the stated objectives, a recursive dynamic computable general equilibrium (CGE) model is used as an important analytical tool. As a main data base the model is calibrated with an updated version of 2005106 Social Accounting Matrix (SAM). There were three individual and two combined simulations. According to the simulation results, following tariff reduction, with exception of investment and government income, almost all of the macroeconomic indicators, sectoral output and welfare indicators have shown improvement. Similarly, in the combined simulation, tariff reduction and direct tax rate adjustment, though the percentage of improvement is lower for some variables all of the variables have recorded a positive change. Unlike the above simulations, the simulation combining tariff reduction together with sales tax rate adjustment has shown a negative change in some of macroeconomic indicators, sectoral output and welfare indicators. In concluding, in those simulations which included sales tax rate adjustment has brought adverse effect on most of the economic variables. Therefore, from the welfare point of view, the implication of our study is that, comparing the two compensating measures, it is beneficial to apply direct tax rate adjustment together with tariff reduction