Towards an explicit modeling of trade facilitation in CGE models: evidence from Egypt

Zaki, Chahir (2010): Towards an explicit modeling of trade facilitation in CGE models: evidence from Egypt.

Abstract

This paper develops a dynamic computable general equilibrium (CGE) model incorporating trade facilitation aspects. This paper’s contributions are twofold: theoretical and empirical. First, this paper attempts to model trade facilitation explicitly in a dynamic CGE model applied. On the empirical side, I estimate, not assume, the tariff equivalent of red tape and related procedures at sectoral level. I use the ad valorem tariff equivalents of time to import and to export that have been estimated in a companion paper and I take into account the cost of such a process. To do so, I modify the Exter model that is calibrated on the Egyptian social accounting matrix of 2000/2001. My main findings show that, when trade facilitation is modeled precisely, i.e. by taking into account its cost as well as the tariff equivalents of its aspects, the impact of such a process is reduced. Meanwhile, its impact remains higher than trade liberalization. Moreover, some sectors witness a significant expansion more than others, especially processed food, garments and high value added products.

• Item Type: MPRA Paper
• Language: English
• Keywords: CGE; Trade facilitation; Egypt
• Subjects: F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models

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