Zaki, Chahir and Hendy, Rana (2009): Rethinking the Redistribution Effects of Trade Liberalization in Egypt: A Microsimulation Analysis.
Download (462Kb) | Preview
This paper aims at evaluating the liberalization policies effects on inequality in Egypt with respect to gender, region and qualification level. No previous studies in Egypt, to our best knowledge, have used the Microsimulation analysis which is a good tool that allows such an evaluation and determines the redistribution aspects of macro policies. The latter consists of linking macroeconomic changes to the micro level of the economy i.e. the individual level. A Computable General Equilibrium model (CGE) is first estimated for a maximum tariff rate of 10%. And, wages and employment changes resulted from the CGE are replicated, in a second stage, into our micro data. Results show that liberalization policies have important impacts on inequalities among the Egyptian population in general. Inequality has decreased among males and females as well as among different regions of the Egyptian society but has increased among high-skilled and low-skilled workers. Results of the present research have important policy implications that have to be considered.
|Item Type:||MPRA Paper|
|Original Title:||Rethinking the Redistribution Effects of Trade Liberalization in Egypt: A Microsimulation Analysis|
|English Title:||Rethinking the Redistribution Effects of Trade Liberalization in Egypt: A Microsimulation Analysis|
|Keywords:||Trade liberalization; Egypt; CGE|
|Subjects:||F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
J - Labor and Demographic Economics > J0 - General > J01 - Labor Economics: General
D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models
J - Labor and Demographic Economics > J1 - Demographic Economics > J16 - Economics of Gender; Non-labor Discrimination
|Depositing User:||Chahir ZAKI|
|Date Deposited:||18. Jun 2010 05:42|
|Last Modified:||16. Feb 2013 03:52|
 Ahmed, V. and O’Donoghue, C., (2004) “Using CGE and Microsimulation Models for Income Distribution Analyses: A Survey”, March.
 Annabi, N., Cockburn, J. and Decaluw´e, B., (2004) “A Sequential Dynamic CGE Model For Poverty Analysis”, May.
 Assaad, R., (2007), “Labour supply, employment and unemployment in the Egyptian economy: 1988-2006”. Population Council Working Paper 0701.
 Barssoum, G., (2007), “Egypt labour market panel survey 2006: Report on methodology and data collection”. Economic research forum (ERF) working paper 0704.
 Beneria, L. and Bisnath, S., (1996), “Gender and poverty: An analysis for action”, UNDP Gender in Development Monography series 2.
 Bourguignon, F., Robilliard, A. S. and Robinson, S., (2006) “Examining the Social Impact of the Indonesian Financial Crisis using a Micro Macro Model”, March.
 Bourguignon, F., Robilliard, A. S. and Robinson, S., (2003) “Representative versus real households in the macro-economic modeling of inequality”, DELTA Working Papers 2003-05, DELTA (Ecole normale sup´erieure).
 Borjas, G. and Ramey, V., (1995) “Foreign Competition, Market Power and Wage Inequality” The Quarterly Journal of Economics, Vol. 110, No. 4 (Nov., 1995), pp. 1075-1110.
 Chemingui, M.A. and Thabet, C., (2008), “Agriculture trade liberalization and poverty in Tunisia: Micro- simulation in a General equilibrium framework”, Economic research forum (ERF) working paper 402.
 Colombo, G. (2008), “Linking CGE and Microsimulation Models: A Comparison of Different Approaches”, ZEW Discussion Paper No. 08-054, Mannheim.
 Colombo, G. (2008), “The Effects of DR-CAFTA in Nicaragua: A CGEMicrosimulation Model for Poverty and Inequality Analysis”, mimeo.
 Decaluw´e, B., Martens A. and Savard L., (2001) “La Politique Economique du D´eveloppement et les Mod`eles d’Equilibre G´en´eral Calculable”, Les Presses de l’Universit´e de Montr´eal, Montr´eal, Canada, septembre.
 Decaluw´e, B., Dumont J. C. and Savard L., (1999) “Measuring Poverty and Inequality in a Computable General Equilibrium Framework”, Universit´e Laval, Cahier de Recherche du C’ERFA 99-20.
 Eby Konan, D. and Maskus K., (1996)“A Computable General Equilibrium Analysis of Egyptian Trade Liberalization Scenarios”, World Bank Working Paper No. 97-1, August.
 Edward, S., (1987), “Sequencing economic liberalization in developing countries”, Finance and Development, March.
 El-Hamidi, F., (2008), “Trade liberalization, gender segmentation, and wage Discrimination: Evidence from Egypt”, Economic Research Forum Working Paper 414.
 Elson, D., (1992), “Labor markets as gendered institutions: Efficiency and empowerment issues”, in World development, vol.27, No. 3.
 Epifani, P. and Gancia G., (2007) “TThe Skill Bias of World Trade”, mimeo March.
 Fofana, I., Cockburn J., Decaluw´e B. and Robichaud V., (2006) “Un Mod`ele Standard d’Equilibre G´en´eral Calculable pour l’Analyse des Politiques Economiques”, Centre Universitaire sur le Risque , les Politiques Economiques et l’Emploi (CIRPEE) et le R´eseau de Recherche sur les Politques Economiques et la Pauvret´e (PEP), Universit´e de Laval, Qu´ebec, Canada, July.
 Fontana, M. et al., (1998), “Global trade expansion and liberalization: Gender issues and impacts”, Bridge Briefings on Development and Gender, Report No. 42, Brighton, IDS/ University of Sussex.
 Haan, P., (2004), “Discrete choice labor supply: Conditional logit vs. random coefficient models”. DIW discussion paper 394.
 Korayem, K., (1997), “Egypt’s economic reform and structural adjustment (ERSAP)”, ECES Working Paper 19, october.
 Nassar, H. 2005, “Migration, Transfer and Development in Egypt”CARIM Research Report 2005/01.
 Rutherford, T., Rutstrom, E. and Tarr, D. (1993) “Morocco’s Free Trade Agreement with the European Community : a Quantitative Assessment”, Policy Research Working Paper Series No. 1173, The World Bank.
 Said, M., (2007) “The Fall and Rise of Earnings and Inequality in Egypt: New Evidence From the ELMPS, 2006”, ERF Working Paper 0708.
 Savard L. (2003) “Poverty and Income Distribution in A CGE-Household Microsimulation Model: Top-Down/Bottom-Up Approach”, CIRP´EE, Working Papers 03-43, Universit´e Laval.
 World Bank, (1991b), “Egypt’s economy in the 1990’s: challenges and opportunities”, Washington, DC, June.
 World Bank, (1991c), “Egypt, alleviating poverty during structural adjustment”, Washington, DC.