Can Regional Integration Accelerate Development in Africa? CGE Model Simulations of the Impact of the SADC FTA on the Republic of Madagascar

Madagascar plans to start phasing out its customs tariffs on imports from the Southern African Development Community in 2007. This paper uses a CGE model to evaluate the impact of the SADC FTA on Madagascar economy. The results suggest that the SADC FTA would only have a limited impact on Madagascar...

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Bibliographic Details
Main Author: Hallaert, Jean-Jacques
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2007
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Madagascar, Republic of 
653 |a Balance of trade 
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653 |a Tariffs 
653 |a Labour; income economics 
653 |a International Trade Organizations 
653 |a Employment; Economic theory 
653 |a Public finance & taxation 
653 |a Trade Policy 
653 |a Trade liberalization 
653 |a Trade balance 
653 |a Aggregate Labor Productivity 
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653 |a Trade: General 
653 |a Exports and Imports 
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653 |a Aggregate Human Capital 
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653 |a Commercial policy 
653 |a Exports 
653 |a Wages 
653 |a Empirical Studies of Trade 
653 |a Intergenerational Income Distribution 
653 |a Taxation 
653 |a Imports 
653 |a Employment 
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520 |a Madagascar plans to start phasing out its customs tariffs on imports from the Southern African Development Community in 2007. This paper uses a CGE model to evaluate the impact of the SADC FTA on Madagascar economy. The results suggest that the SADC FTA would only have a limited impact on Madagascar's real GDP because the liberalization affects only a small share of its total imports. However, Madagascar's trade and production pattern would change and benefit the textile and clothing sector. Removing rigidities in the labor and capital market would increase the gains but they would remain limited. Gains from the SADC FTA become substantial only when the regional liberalization is accompanied by a multilateral liberalization