The SADC region and EPA/EBAI – trade balance analysis

Sukati, Mphumuzi (2011): The SADC region and EPA/EBAI – trade balance analysis.

Abstract

This paper investigates the potential trade balance outcomes of the EPA/EBAI policies in the SADC region using the GTAP7 model and database. The analysis of these policies therefore make conclusion on SADC member states’ changes in trade balance overall, per commodity groups and on overall welfare outcomes as a result of these policies. The study has found that although the EPA/EBAI initiative policies will potentially result in overall welfare gain in the SADC region this welfare gain will only be 6% of the EU27. Analysis of trade balance outcome reveals that the SADC ACP region will suffer a negative trade balance of US$1596.8 million with the EU on the other hand having a positive trade balance of US$105.61 million. Since a positive trade balance is important for sustainable development of nations, these results once again throw into doubt the potential sustainable economic growth benefits of these policies to ACP countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: Key words: Trade Balance, Welfare, EPA/EBAI Policies, Sustainable Development, Sustainable Economic Growth
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General; A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N17 - Africa ; Oceania; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination; A - General Economics and Teaching > A1 - General Economics > A11 - Role of Economics ; Role of Economists ; Market for Economists; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology

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