Impact of Trade Openness on Poverty via Agricultural Ethiopia: a Sequential Dynamic Computable General Equilibrium Micro Simulation Analysis

This study tries to address the impact of trade on poverty through of agricultural total factor productivity (TFP). Thus, we employed a Sequential Dynamic Computable General Equilibrium Model linked to a Micro Simulation Model. We also used an econometric model to estimate the agricultural TFP of Ethiopia to create scenarios.The estimation results of this study shows that trade openness has a positive impact on agricultural TFP and our simulation result revealed that the proposed policy change mainly tariff cut and trade induced agricultural TFP have an incremental effect on all macroeconomic variables. However,poverty is exacerbated due to trade openness and tariff reduction during the simulation period.


Editor(s):
Tadele Ferede
Abu Girma
Getnet Alemu
Demirew Getachew
Issue Date:
Sep 01 2015
Publication Type:
Journal Article
ISSN:
1993-3681
Language:
English
Published in:
Ethiopian Journal of Economics, Volume 23, Number 1
Page range:
1-30
JEL Codes:
C33; C68; D24; F1; I32




 Record created 2017-07-12, last modified 2017-08-29

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