scholarly journals DAMPAK PEMBATASAN IMPOR HORTIKULTURA TERHADAP AKTIVITAS PEREKONOMIAN, TINGKAT HARGA DAN KESEJAHTERAAN

2014 ◽  
Vol 16 (1) ◽  
pp. 21-41
Author(s):  
Wisnu Winardi
Keyword(s):  
Social Welfare ◽  
Computable General Equilibrium ◽  
Policy Instrument ◽  
Cge Model ◽  
Economic Activities ◽  
Redistribution Policy ◽  
Factor Income ◽  
Current Value ◽  
Horticultural Products ◽  
The Impact

This paper analyzes the impact of entry ports reduction on horticultural production on the economic activities, prices and also toward social welfare by using Computable General Equilibrium (CGE) model. The simulation shows higher import restriction on horticultural products will not only increase the factor income (at current value), but will also increase the composite prices. The higher effect of the latter leads to social welfare reduction, but on the other hand favors the agriculture household types. This finding shows import restriction on horticulture product serves as income redistribution policy instrument. With regard to this, the monetary authority should take the issue into account, especially in order to anticipate the effect of composite prices increase, which could lead to the need of extra efforts in managing price stability. Keywords: import reduction; prices, inflation, CGE; social welfare; income distribution.JEL Classification: E25, E27

scholarly journals THE IMPORT RESTRICTION OF HORTICULTURAL PRODUCT, DOMESTIC ACTIVITIES, PRICE LEVEL, AND THE WELFARE

2014 ◽  
Vol 16 (1) ◽  
pp. 19-38
Author(s):  
Wisnu Winardi
Keyword(s):  
Social Welfare ◽  
Computable General Equilibrium ◽  
Price Level ◽  
Policy Instrument ◽  
Economic Activities ◽  
Redistribution Policy ◽  
Factor Income ◽  
Current Value ◽  
Horticultural Products ◽  
The Impact

This paper analyzes the impact of entry ports reduction on horticultural production on the economic activities, prices and also toward social welfare by using Computable General Equilibrium (CGE) model. The simulation shows higher import restriction on horticultural products will not only increase the factor income (at current value), but will also increase the composite prices. The higher effect of the latter leads to social welfare reduction, but on the other hand favors the agriculture household types. This finding shows import restriction on horticulture product serves as income redistribution policy instrument. With regard to this, the monetary authority should take the issue into account, especially in order to anticipate the effect of composite prices increase, which could lead to the need of extra efforts in managing price stability. Keywords: import reduction; prices, inflation, CGE; social welfare; income distribution.JEL Classification: E25, E27

scholarly journals Calculation of optimal tax rate of water resources and analysis of social welfare based on CGE model: a case study in Hebei Province, China

Water Policy ◽  
2020 ◽  
Author(s):  
Gui-liang Tian ◽  
Zheng Wu ◽  
Yu-can Hu
Keyword(s):  
Water Resources ◽  
Social Welfare ◽  
Computable General Equilibrium ◽  
Hebei Province ◽  
Utilization Efficiency ◽  
Cge Model ◽  
Tax Rate ◽  
Optimal Tax ◽  
Water Resources Protection ◽  
The Impact

Abstract The determination of the optimal tax rate of water resources is one of the core as well as the key economic and technological issue in the ‘fee to tax’ work of water resources in China. Therefore, based on the introduction of the computable general equilibrium (CGE) model of water resources tax, using production parameters and consumption parameters of Hebei province in 2008–2017, the optimal tax rate of water resources is simulated and calculated, and the impact of the optimal tax rate on social welfare is analyzed. The results show that the reference of the best water resources tax rate in Hebei Province is 18%, and taxation on water resources effectively promotes the water use structure and water resources utilization efficiency in Hebei, which is beneficial to its water resources protection. The effective calculation of the optimal tax rate of water resources tax in Hebei Province proves the effectiveness of the CGE model in the formulation of water resources tax rate, which provides an important reference for the nationwide popularization of water resources ‘fee to tax reform’ in China and the formulation of water resources tax rate in other regions.

scholarly journals Tourism taxes and negative externalities in tourism in australia: A CGE approach

2013 ◽  
Vol 10 (4) ◽  
pp. 200-214
Author(s):  
Ranjith Ihalanayake
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
International Tourism ◽  
Cge Model ◽  
Negative Externalities ◽  
Economic Activities ◽  
Long Run ◽  
Tourism Sector ◽  
Australian Economy ◽  
Short Run

In this paper we analyse general equilibrium effects of an increase in a tourism tax which we hypothetically designed to internalise negative externalities of international tourism in Australia. Several simulations were carried out using a computable general equilibrium (CGE) model of the Australian economy. The simulations were carried out assuming two different economic environments, the short-run and the long-run. The simulation results suggest that due to an increase in tourism taxes, the international tourism sector tends to contract while the other sectors expand. Overall, an increase in tourism taxes appears to be welfare improving in the long-run though it generates a marginal contraction in overall economic activities in the short run.

scholarly journals DAMPAK KERJA SAMA PERDAGANGAN INDONESIA DENGAN EURASIAN ECONOMIC UNION (EAEU) TERHADAP PEREKONOMIAN INDONESIA

2018 ◽  
Vol 12 (2) ◽  
pp. 161-180
Author(s):  
Deky Paryadi ◽  
Aziza Rahmaniar Salam
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Cge Model ◽  
Eurasian Economic Union ◽  
Comparative Advantages ◽  
Vegetable Foodstuffs ◽  
Economic Union ◽  
The Impact ◽  
Eurasian Region ◽  
Elimination Scheme

 Abstrak Kawasan Eurasia merupakan wilayah yang penting secara geopolitik dan geostrategi bagi perdagangan Indonesia. Melihat potensi yang dimiliki oleh negara-negara yang tergabung dalam Eurasian Economic Union (EAEU), Indonesia diharapkan dapat memanfaatkan peluang yang terbuka. Penelitian ini bertujuan untuk mengetahui potensi daya saing komoditas serta dampak kerja sama perdagangan Indonesia-EAEU. Metode analisis yang digunakan adalah Trade Complementary Index (TCI), Revealed Symetric Comparative Advantages (RSCA) dan Computable General Equilibrium (CGE) model dengan data dasar GTAP versi 9 menggunakan enam simulasi. Berdasarkan analisis TCI, tingkat kesesuaian ekspor EAEU terhadap struktur impor Indonesia lebih tinggi dibandingkan ekspor Indonesia terhadap struktur impor EAEU. Dengan melihat dampak kerja sama perdagangan Indonesia-EAEU terhadap makroekonomi Indonesia, penurunan tarif bea masuk sebesar 50% untuk seluruh produk Indonesia dan EAEU merupakan alternatif kebijakan terbaik. Indonesia perlu menjajaki kemungkinan kerja sama dengan EAEU dengan pendekatan berupa eliminasi 50% pada seluruh pos tarif secara bertahap. Selain itu, disarankan Indonesia fokus pada komoditas yang memiliki daya saing di pasar EAEU yaitu sektor animal; vegetable; foodstuffs; plastics/ rubber; raw hides; woods; textile; stone/glass; machinery; dan transportation.AbstractThe Eurasian region is an important area for Indonesia in term of geopolitic and geostrategy. Due to the economic potential of EAEU countries, Indonesia must take advantage of it. This study aims to determine the potential competitiveness of commodities and the impact of trade cooperation between Indonesia-EAEU. Methods used in this study were Trade Complementary Index (TCI), Revealed Symetric Comparative Advantages (RSCA) and Computable General Equilibrium (CGE) model utilizing basic data of GTAP version 9 of six simulations. By using TCI method it was found that the comformity level of EAEU's export to Indonesia's import structure is higher than Indonesia's exports to the EAEU import structure. Looking at the impact of Indonesia-EAEU trade cooperation on Indonesia’s economy, tariff reduction of 50% for all Indonesian products and EAEU is the best policy alternative for Indonesia. Therefore, It is a must to Indonesia to explore the possibility of cooperation with EAEU with a 50% elimination scheme gradually to all tariff lines. Indonesia should also focus on commodities which have competitiveness in EAEU market i.e. animal; vegetable; foodstuffs; plastics/rubber; raw hides; woods; textile; stone/glass; machinery; and transportation.

Can the Post-COVID FDI Boost the Indian Economy?

2022 ◽  
pp. 097226292110662
Author(s):  
Isha Jaswal ◽  
Badri Narayanan G ◽  
Shanu Jain
Keyword(s):  
Computable General Equilibrium ◽  
Motor Vehicle ◽  
Trade Policies ◽  
Cge Model ◽  
Foreign Direct Investments ◽  
Policy Reforms ◽  
Fdi Inflows ◽  
Area Of Interest ◽  
Potential Impact ◽  
The Impact

Ever since the liberation of trade policies in India, Foreign Direct Investments (FDI) has been crucial in the growth of the economy, both at the macro as well as sector level. The association between FDI and economic growth is an area of interest globally. The investment decisions are affected by several national and international events that add to the volatility of the number of inflows. COVID-19 pandemic severely impacted the intensity of FDI inflows. But the strong resilience by our government manifested in crucial policy reforms and proactive decision-making minimized the impact. This article examines the potential impact of FDI on crucial macroeconomic variables using the Computable General Equilibrium (CGE) Model. Introducing the policy shock of $90 billion into the model, an increase of 5.68% per annum in GDP is estimated. Findings indicate that the impact of FDI shall be favourable to a large number of sectors mainly metals, construction, motor vehicle, computers, and electronics in terms of increased output, exports, and employment opportunities. The study offers logical implications for the policymakers to continue strengthening their moves to attract FDI.

scholarly journals EFFECTS OF INTEGRATING DIRECT CASH AID INTO FUEL SUBSIDY REMOVAL IN THE DOMESTIC COMMODITY MARKET IN MALAYSIA USING COMPUTABLE GENERAL EQUILIBRIUM (CGE) MODEL

2019 ◽  
Author(s):  
Loo Sze Ying ◽  
Mukaramah Harun
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Complete Removal ◽  
Cge Model ◽  
Sudden Increase ◽  
Consumer Expenditure ◽  
Fuel Prices ◽  
Consumer Prices ◽  
Future Economic Development ◽  
The Impact

Direct cash aid has been introduced to protect the poor from the impact of rising fuel prices in efforts to remove subsidies in Malaysia. Thus, this paper is aimed at evaluating the changes in prices and quantities of consumer commodities produced by 17 sectors in response to the integration of direct cash aid into fuel subsidy removal. Specifically, the direct cash aid was a reallocation of saved resources through the complete removal of fuel subsidy. This study was carried out using the Lofgren-based computable general equilibrium (CGE) model, by simulating the before and after imposition of fiscal integration. With the withdrawal of government fuel subsidy, the findings showed that recipients of the cash aid tended to spend on basic necessities such as food and beverages, and petrol (for individual vehicle consumption). Nonetheless, the sudden increase in consumer expenditure led to higher consumer prices as current supplies was unable to catch up with increase in demand. Thus, it is advisable to have other effective, concurrent development programs to stimulate future economic development. Keywords:  Fuel subsidy removal, Direct cash aid, Computable general equilibrium (CGE) model.

An econometric model of the determinants of private investment and a CGE model of the impact of democracy on investment and economic growth in Fiji

2008 ◽  
Vol 35 (12) ◽  
pp. 1017-1031 ◽  
Author(s):  
Paresh Kumar Narayan
Keyword(s):  
Computable General Equilibrium ◽  
Econometric Model ◽  
Private Investment ◽  
Cge Model ◽  
Content Type ◽  
Long Run ◽  
National Welfare ◽  
Investment Function ◽  
The Impact ◽  
Democratic Country

PurposeThe purpose of this paper is to construct an econometric model of the determinants of private investment with a particular focus on the impact of democracy on investment.Design/methodology/approachThe first step was to econometrically derive the long‐run elasticities; then to modify the Fiji computable general equilibrium (CGE) model to incorporate the investment function. Also the econometrically derived long run elasticities in the CGE model were used.FindingsIt was found that democracy has a positive and statistically significant impact on private investment in Fiji. The paper's simulation of Fiji becoming a fully democratic country on investment and other macroeconomic fundamentals, based on a CGE model, reveals that real gross domestic product and real national welfare increase by around 0.01 and 0.05 per cent, respectively; government savings and revenue performance improves; there is a trade balance surplus; and both private consumption and disposable income increase by around 0.05 and 0.12 per cent, respectively.Originality/valueThis is the first study that uses a CGE model to examine the impact of democracy, via investment, on other macroeconomic fundaments. No other study is known to have modelled democracy in a CGE framework.

Tax Policy to Reduce Carbon Emissions in a Distorted Economy: Illustrations from a South Africa CGE Model

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Shantayanan Devarajan ◽  
Delfin S Go ◽  
Sherman Robinson ◽  
Karen Thierfelder
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
Carbon Emissions ◽  
Computable General Equilibrium ◽  
Alternative Energy ◽  
Carbon Tax ◽  
Cge Model ◽  
Administrative Capacity ◽  
The Cost ◽  
The Impact

Abstract Noting that developing countries may not have the administrative capacity to levy a “pure” carbon tax, we compare the impact of alternative energy taxes with that of a carbon tax in an economy with multiple distortions. We use a disaggregated computable general equilibrium (CGE) model of the South African economy and simulate a range of tax policies that reduce CO2 emissions by 15 percent. Consistent with a “first-best” economy, a carbon tax will have the lowest marginal cost of abatement. But the relationship between a tax on energy commodities and one on pollution-intensive commodities depends critically on other distortions in the system and on structural rigidities in the economy. We demonstrate that if South Africa were able to remove distortions in the labor market, the cost of carbon taxation would be negligible. We conclude that the welfare costs of taxing carbon emissions in developing countries depend more on other distortions than on the country’s own carbon emissions.

scholarly journals Contribution of VAT to economic growth: A dynamic CGE analysis

2021 ◽  
Vol 43 ◽  
pp. 26-55
Author(s):  
Jean Luc Erero ◽  
◽  
◽  
Keyword(s):  
General Equilibrium ◽  
Impact Assessment ◽  
South African ◽  
Computable General Equilibrium ◽  
Income Tax ◽  
Cge Model ◽  
The South ◽  
Dynamic Cge ◽  
The Impact ◽  
Dynamic Computable General Equilibrium

Aim/purpose–This study sought to assess the impact of an increased historical fixed VAT rate of 14% to the current rate of 15% on the South African economy. Design/methodology/approach–The method applied in this study was based on a Dynamic Computable General Equilibrium (CGE) model to evaluate the impact of both the VAT rate of 14% and a new rate of 15% on the South African economy. The CGE model has been proven over the years to be a suitable model when evaluating the impact assessment of any shock within an economy. Enhancements were made by the researcher to the direct and indirect tax section of the model, i.e., the direct tax section was disaggregated, such that for both firm and household revenues, a dividend income stream is separated from other income streams. The main reason is to facilitate a detailed analysis of Corporate Income Tax (CIT) and Personal Income Tax (PIT), as well as the latest implemented Dividend Tax (DT).Findings–When VAT was increased from 14% to 15%, the immediate reaction of the shock from the Dynamic CGE model indicates that the Gross Domestic Product (GDP) declined by 0.0002% in 2018, but increased by 0.0028% in the following year (2019). The trend continued until 2021, hence the 1% increase in the VAT tax rate will increase the expected forecast of VAT collection by approximately R3.2 billion on average. Research implications/limitations–The findings of this study will be implemented by the South African government, which will use a dynamic CGE model to assess South Africa’s VAT contribution to the economy. The database of the CGE model was limited to the Social Accounting Matrix (SAM) for 2015. Originality/value/contribution–The study recommends the use of this method for assessing the impact of tax policy changes to the South African economy. The CGE model seems to be the best model as far as the impact assessment of a shock in the econ-omy is concerned. This will assist the South African authorities with their decision mak-ing regarding future VAT revenue. Keywords: South African Revenue Service (SARS), Value Added tax (VAT), Dynamic computable general equilibrium (CGE) model.JEL Classification:H21, C68, E62.

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