The impact of tariff removal on poverty in Zimbabwe: A computable general equilibrium microsimulation |
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| Authors: | Margaret Chitiga Ramos Mabugu Tonia Kandiero |
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| Affiliation: | 1. University of Pretoria mchitiga@postino.up.ac.za;3. University of Pretoria;4. National Treasury , South Africa |
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| Abstract: | The paper uses a microsimulation computable general equilibrium (CGE) model to study the impact on poverty of a complete removal of tariffs in Zimbabwe. The model incorporates 14,006 households derived from the 1995 Poverty Assessment Study Survey. This paper's novelty is that it is one among a small group of papers that incorporates individual households in the CGE model as opposed to having representative households. Using individual households allows for a comprehensive analysis of poverty. The complete removal of tariffs favours exporting sectors. Poverty falls in the economy while inequality hardly changes. The results differ between rural and urban areas. |
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