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GTAP Resources: Resource Display

GTAP Resource #4428

"Tariff reform and reduction of regulatory barriers faced by domestic and foreign firms: A CGE analysis for female and male workers in Tanzania"
by Latorre, Maria

Methodological approach
In this paper we extend previous analysis based on a computable general equilibrium (CGE) model for Tanzania (Jensen et al., 2010), in order to focus on its gender implications. The effects of tariffs reform, as well as, the reduction of regulatory barriers to the provision of specialized services by domestic or foreign firms through foreign direct investment (FDI) are analyzed.
We first work on the data that are publicly available in the Tanzanian National Statistics (NBS, 2002a). As a result, an ambitious 3-dimensional (sex-sector- skill) dataset has been obtained for 52 sectors with 4 skill levels.
Main results
The policies that involve lowering regulatory barriers faced by both domestic and multinational firms operating in services sectors increase the number of firms in those sectors. This heavily boosts their production and labor demand, raising wages across all worker categories. However, the increase in wages is higher for males than for females. This is because the expanding Business services and, to a lesser extent, other sectors that also increase production exhibit higher male workers’ than female workers’ intensity. By contrast, agriculture has the highest intensity in low skilled women.
The largest increases in wages are experienced by the most skilled workers. The reason is the same one that explains higher male wages compared to those of females. Business services (and, to a lesser extent, other expanding sectors) use intensively more skilled workers. Therefore, a way of improving (female as well as male) labor conditions in Tanzania is skill upgrading in order to make workers more employable in the salaried jobs of expanding sectors, trying to reduce workers involvement in agriculture.
In a shock considering only the change from a heterogeneous spectrum of tariffs to a uniform one, the output expansion of Business services is considerable reduced compared to the scenario of new entry of firms. By contrast, the le...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Latorre, M. (4/14/2014)
Updated: Latorre, M. (5/30/2014)
Visits: 1,121
- Foreign direct investment
- Labor market issues
- Trade and gender
- Other data bases and data issues
- Africa (West)

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