@article{Mureverwi:332732,
      recid = {332732},
      author = {Mureverwi, Brian},
      title = {Welfare Decomposition of the Continental Free Trade Area},
      address = {2016},
      year = {2016},
      note = {Presented at the 19th Annual Conference on Global Economic  Analysis, Washington DC, USA},
      abstract = {The Continental Free Trade Area (CFTA) is set to be  launched in 2017, culminating ultimately into duty free  quota free trade among African countries. The rationale for  the establishment of the African mega-regional trade  agreement is boost intra-African trade beyond the current  levels of 13% and improve welfare of Africans. This study  makes using of the Dynamic GTAP model to simulate the  welfare effects of hundred percent tariff liberalisation.  Results, measured through the equivalent variation, show  that all African countries benefit -on a varying scale-  from increases in labour demand, capital accumulation,  terms of trade, and allocative efficiencies. However, many  countries experience huge revenue losses from tariff  liberalisation, and this tends to water down gains from  other variables. Regional hegemonies in Africa dominate as  major gainers in absolute terms, in the CFTA hundred  percent tariff liberalisation, notably South Africa in  Southern Africa, Kenya in East Africa, and Nigeria in West  Africa. However, the magnitude could be higher if tariff  liberalisation is coupled with infrastructure development  in the widest sense, and removal of NTBs as part of the  broader trade facilitation processes. And in order to  consolidate these gains, African countries must focus on  export diversification, conflict, border issues, and  financial constraint.},
      url = {http://ageconsearch.umn.edu/record/332732},
}