The Impact Of Trade On Poverty In Ethiopia A Sequential Dynamic Computable General Equilibrium Micro Simulation Analysis

This study tries to address the impact of trade on poverty by way of agricultural total factorrnProductivity (FFP). In doing so, we employ a Sequential Dynamic Commutable GeneralrnEquilibrium Model linked to a Micro Simulation Model. We also used econometric model tornEstimate the agricultural TFP of Ethiopia. For these purpose, we utilized the data of the 2005/06rnSAM of EDRI (Ethiopian Development Research Institute), the 2004/05 HICE (HouseholdrnIncome Consumption Expenditure) survey conducted by CSA (Central Statistical Agency ofrnEthiopia), different years of agricultural sample surveys of CSA and the ITC UNCTAD data.rnrnThe estimation results of this study shows that trade openness and fertilizer application havernPositive impact on agricultural TFP. But seeds, irrigation and extension have negative impact onrnAgricultural TFP. We also found that the proposed tariff cut, trade induced agricultural TFPrnand improved agricultural TFP due the application of fertilizer results in an increment in allrnMacroeconomic variables. However, poverty due to trade openness and tariff reductionrnExacerbate poverty during the simulation period.

Get Full Work

Report copyright infringement or plagiarism