scholarly journals Trade Barrier Elimination, Economics of Scale and Market Competition: Computable General Equilibrium Model

2017 ◽  
Vol 6 (2) ◽  
pp. 189-216
Author(s):  
Widyastutik Widyastutik ◽  
Suahasil Nazara ◽  
Rina Oktaviani ◽  
Djamester Simarmata
Keyword(s):  
Computable General Equilibrium ◽  
Market Competition ◽  
Computable General Equilibrium Model ◽  
Cge Model ◽  
Trade Barriers ◽  
Sea Transport ◽  
Competitive Effects ◽  
Services Sector ◽  
Economics Of Scale ◽  
Transport Services

The ASEAN and its dialogue partner countries agreed to reduce trade barriers in the services sector, one of which is sea transport services. The purpose of this study is to estimate the equivalent tax of non-tariff barriers in the sea transport services. Besides that, this study is going to analyze the economic impacts of the regulatory barriers elimination in the sea transport services of ASEAN and its dialogue partner countries. Using the gravity model, it can be identified that trade barriers of sea transport services sector of ASEAN and dialogue partner countries are still relatively high. Additionally, by adopting IC-IRTS model in Global CGE Model (GTAP), the simulation results show consistent results with the theory of pro-competitive effects. The greater gain from trade is obtained in the CGE model assuming IC-IRTS compared to PC-CRTS. China gains a greater benefit that is indicated by the highest increase in welfare and GDP followed by Japan and AustraliaDOI: 10.15408/sjie.v6i2.5279

scholarly journals Risk Of Corruption For Economic Growth And Poverty: The Case Of A Developing Country

2017 ◽  
Vol 7 (2) ◽  
pp. 129-139
Author(s):  
François Joseph Cabral
Keyword(s):  
Economic Growth ◽  
Computable General Equilibrium ◽  
Public Investment ◽  
Computable General Equilibrium Model ◽  
Cge Model ◽  
Finance Management ◽  
Yearly Incidence ◽  
Average Loss ◽  
Welfare And Poverty ◽  
Dynamic Computable General Equilibrium

In this article, we attempt to assess the effects of corruption on economic growth, welfare and poverty in Senegal, using the dynamic computable general equilibrium model (CGE). The profile of fiscal governance is firstly built based on data relied to Global integrity, Open budget initiative and Public finance management reports for Senegal. Secondly, we build a CGE model based on the SAM of Senegalese economy. The simulation results show leakage of 10% of public investment as a result of corruption, which would effectively lead to an average loss of 2.6% points of economic growth per year. The welfare of households fall on average by 0.64% point per year. Moreover, the diversion of resources meant for public investment also has the effect of increasing the yearly incidence of poverty by 0.51% point on average, which is equivalent to 61,136 new poor every year.

Measuring drought based on a CGE model with multi-regional irrigation water

Water Policy ◽  
2016 ◽  
Vol 18 (4) ◽  
pp. 877-891 ◽  
Author(s):  
Shuai Zhong ◽  
Jinghua Sha ◽  
Lei Shen ◽  
Mitsuru Okiyama ◽  
Suminori Tokunaga ◽  
...  
Keyword(s):  
Irrigation Water ◽  
Computable General Equilibrium ◽  
Agricultural Production ◽  
Rural Households ◽  
Computable General Equilibrium Model ◽  
Cge Model ◽  
Hydrological Models ◽  
Economic Perspective ◽  
Total Consumption ◽  
External Impact

There have been many droughts in China that have caused severe losses. Previous studies evaluating droughts were from meteorological and hydrological perspectives. We measure the Chinese drought of 2000 based on a static computable general equilibrium model of China's macroeconomy, which describes the relationships between drought, agricultural production, and rural households' welfare from an economic perspective. In the model, the irrigation water inputs of the 16 regions of China are estimated and combined with the same regions' cropland inputs. Thus, the drought is simulated as an external impact by reducing the productivity of different crops in different regions. The reductions in 10 crop outputs and the rural households' welfare, total consumption and food consumption from 16 regions are more severe than those from a perfect market reaction. The findings herein are also distinct in that the five rural households that suffer most as a result of drought are from southern areas. The results provide an available reference for the Chinese government's decision on what measures to take to prevent drought and its impacts. The model can be further improved by incorporating meteorological and hydrological models to identify droughts using more accurate indexes.

The Impact of the Public Expenditure Cuts Policy on the Labor Market in Vietnam

2012 ◽  
pp. 22-46
Author(s):  
Huong Nguyen Thi Lan ◽  
Toan Pham Ngoc
Keyword(s):  
Labor Market ◽  
Computable General Equilibrium ◽  
Impact Evaluation ◽  
Public Expenditure ◽  
Computable General Equilibrium Model ◽  
Living Standard ◽  
Input Output ◽  
Policy Makers ◽  
The Public ◽  
The Impact

The purpose of this study is to evaluate the impact of public expenditure cuts on employment and income to support policies for the development of the labor mar- ket. Impact evaluation is of interest for policy makers as well as researchers. This paper presents a method – that is based on a Computable General Equilibrium model – to analyse the impact of the public expenditure cuts policy on employment and income in industries and occupations in Vietnam using macro data, the Input output table, 2006, 2008 and the 2010 Vietnam Household Living Standard Survey.

scholarly journals The Issue of Macroeconomic Closure Revisited and Extended

2016 ◽  
Vol 66 (1) ◽  
pp. 1-31
Author(s):  
Ernő Zalai ◽  
Tamás Révész
Keyword(s):  
General Equilibrium ◽  
Open Economy ◽  
Computable General Equilibrium ◽  
Statistical Data ◽  
Competitive Equilibrium ◽  
Numerical Models ◽  
Cge Model ◽  
Sector Model ◽  
Cge Models ◽  
Policy Simulations

Léon Walras (1874) had already realised that his neo-classical general equilibrium model could not accommodate autonomous investments. In the early 1960s, Amartya Sen analysed the same issue in a simple, one-sector macroeconomic model of a closed economy. He showed that fixing investment in the model, built strictly on neo-classical assumptions, would make the system overdetermined, and thus one should loosen some neo-classical conditions of competitive equilibrium. He analysed three not neo-classical “closure options”, which could make the model well-determined in the case of fixed investment. His list was later extended by others and it was shown that the closure dilemma arises in the more complex computable general equilibrium (CGE) models as well, as does the choice of adjustment mechanism assumed to bring about equilibrium at the macro level. It was also illustrated through several numerical models that the adopted closure rule can significantly affect the results of policy simulations based on a CGE model. Despite these warnings, the issue of macro closure is often neglected in policy simulations. It is, therefore, worth revisiting the issue and demonstrating by further examples its importance, as well as pointing out that the closure problem in the CGE models extends well beyond the problem of how to incorporate autonomous investments into a CGE model. Several closure rules are discussed in this paper and their diverse outcomes are illustrated by numerical models calibrated on statistical data. First, the analyses are done in a one-sector model, similar to Sen’s, but extended into a model of an open economy. Next, the same analyses are repeated using a fully-fledged multi-sectoral CGE model, calibrated on the same statistical data. Comparing the results obtained by the two models it is shown that although they generate quite similar results in terms of the direction and — to a somewhat lesser extent — of the magnitude of change in the main macro variables using the same closure option, the predictions of the multi-sectoral CGE model are clearly more realistic and balanced.

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