GTAP Resources: Resource Display
| GTAP Resource #3795 |
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"THE IMPACT OF TRADE LIBERALIZATION ON POVERTY IN KENYA: A MICROSIMULATION " by Omolo, Miriam Abstract Trade liberalization in Kenya started in the early 1980’s with the structural adjustment programmes, and continued under the reciprocal trade liberalization under the WTO framework. There are several arguments that have been put forward in favour of trade liberalization such as economic growth, in that countries that have opened their markets have experienced higher growth, increased incomes and diffusion of advanced technologies. However, while trade liberalization comes with opportunities for development, there is the challenge of establishing whether incomes increase in a manner sufficient to foster development in such a way that one is able to economically satisfy his/her needs and self-esteem in conducting economic relations and freedom in choosing his/her destiny, so that those below the poverty line can move out of poverty. It has been argued that incomes tend to increase with trade liberalization. However, it is important to establish whether incomes actually increase with trade liberalization, and in cases where there are increases, does this lead to poor households moving out of poverty? In trying to examine the impact of trade liberalization on poverty in Kenya, the IFPRI CGE model was adopted in undertaking the simulations. The data for the CGE was drawn from the 2003 Kenyan SAM. In the SAM, the households were divided into deciles resulting into 20 household categories for both urban and rural cohorts. The preliminary characteristics of the households were examined and then simulations were undertaken to examine the impact of trade liberalization on households under different scenarios. The scenarios follow the strategies outlined in Kenya’s vision 2030. First, the government argues that there are products that have to be protected as they are important for livelihood protection. This list of sensitive products includes maize, wheat, rice, cotton, sugar, tea, roots and tubers, fruits, vegetables, cut flowers, beef, dairy, poultry, other livestoc... |
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- Calibration and parameter estimation - Africa (East) |
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Public Access  GTAP Resource 3795 (363.0 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
