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Partial Equilibrium Analysis to Determine the Impacts of a Southern African Customs Union-European Union Economic Partnership Agreement on Botswana’s Imports

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  • Buyani Thomy
  • Gurudeo Anand Tularam
  • Mahinda Siriwardana

Abstract

Botswana along with its Southern African Customs Union (SACU) states is negotiating a European Union (SACU-EU) Economic Partnership Agreement (EPA). The negotiations are contentious both within SACU and against the EU and not surprisingly, the initial 2007 deadline not met. This study investigates the effects of such an agreement on Botswana’s import of food, beverages and tobacco using the Vinerian partial equilibrium method. The authors attempt to quantify the impacts of a reciprocal duty and quota free EPA on Botswana’s imports of food, beverages and tobacco under SACU-EU EPA’s. The partial equilibrium analysis suggests that a net welfare benefit for the Botswana consumers is possible. Although there are some trade diversion and tariff revenue losses these do not appear to be large enough to negate the effects of the welfare enhancing trade creation.

Suggested Citation

  • Buyani Thomy & Gurudeo Anand Tularam & Mahinda Siriwardana, 2013. "Partial Equilibrium Analysis to Determine the Impacts of a Southern African Customs Union-European Union Economic Partnership Agreement on Botswana’s Imports," American Journal of Economics and Business Administration, Science Publications, vol. 5(1), pages 1-14, September.
    • Handle: RePEc:abk:jajeba:ajebasp.2013.1.14
    DOI: 10.3844/ajebasp.2013.1.14
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    References listed on IDEAS

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    1. Chris Milner & Oliver Morrissey & Andrew McKay, 2005. "Some Simple Analytics of the Trade and Welfare Effects of Economic Partnership Agreements," Journal of African Economies, Centre for the Study of African Economies, vol. 14(3), pages 327-358, September.
    2. Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008. "Import Demand Elasticities and Trade Distortions," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 666-682, November.
    3. Rojid Sawkut & Seetanah Boopen, 2010. "An Assessment of the Impact of a COMESA Customs Union," African Development Review, African Development Bank, vol. 22(2), pages 331-345.
    4. Vollmer, Sebastian & Martínez-Zarzoso, Inmaculada & Nowak-Lehmann D., Felicitas & Klann, Nils, 2009. "EU-ACP Economic Partnership Agreements - Empirical Evidence for Sub-Saharan Africa," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 39, Verein für Socialpolitik, Research Committee Development Economics.
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    Cited by:

    1. Agbahoungba, Lesfran Sam Wanilo & Thiam, Ibrahima, 2018. "Effets du Commerce Extérieur sur la Croissance Economique en Zone CEDEAO [Economic Growth effects of External Trade in ECOWAS]," MPRA Paper 89035, University Library of Munich, Germany, revised 2018.
    2. Manwa, Farai & Wijeweera, Albert & Kortt, Michael A., 2019. "Trade and growth in SACU countries: A panel data analysis," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 107-118.
    3. Manwa, Farai & Wijeweera, Albert, 2016. "Trade liberalisation and economic growth link: The case of Southern African Custom Union countries," Economic Analysis and Policy, Elsevier, vol. 51(C), pages 12-21.

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