Premium
Will Economic Partnership Agreements Increase Poverty? The Case of Uganda
Author(s) -
Boysen Ole,
Matthews Alan
Publication year - 2017
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12272
Subject(s) - poverty , computable general equilibrium , economics , economic partnership agreement , tariff , liberalization , development economics , government revenue , microsimulation , government (linguistics) , revenue , market access , international economics , free trade , economic growth , macroeconomics , market economy , geography , agriculture , linguistics , philosophy , accounting , archaeology , transport engineering , engineering
Economic Partnership Agreements ( EPA s) between the EU and African Caribbean and Pacific countries are frequently criticized because of fears about negative implications for economic development. Using Uganda as a case study, this paper employs an integrated computable general equilibrium‐microsimulation model framework rich in household‐level detail to assess the consequences of the East African Community EPA for economic output and poverty in Uganda. Simulations of the agreement's tariff liberalization provisions indicate a very small negative economic impact and ambiguous outcomes for poverty. The poverty results depend in size and sign on the poverty line, on the way the government addresses tariff revenue losses and on labor market assumptions.