IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v21y2017i2p353-382.html
   My bibliography  Save this article

Will Economic Partnership Agreements Increase Poverty? The Case of Uganda

Author

Listed:
  • Ole Boysen
  • Alan Matthews

Abstract

Economic Partnership Agreements (EPAs) between the EU and ACP countries are frequently criticized because of fears about negative implications for economic development. Using Uganda as a case study, this paper employs an integrated macro-micro framework rich in household-level detail to assess the consequences of the East African Community EPA for economic output and poverty. Simulations of the agreement's tariff liberalization provisions indicate very minor negative economic and poverty impacts mostly affecting the rural poor. The poverty results depend in size and direction on the way the government addresses tariff revenue losses and on labor market assumptions.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ole Boysen & Alan Matthews, 2017. "Will Economic Partnership Agreements Increase Poverty? The Case of Uganda," Review of Development Economics, Wiley Blackwell, vol. 21(2), pages 353-382, May.
    • Handle: RePEc:bla:rdevec:v:21:y:2017:i:2:p:353-382
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/rode.12272
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:bla:devpol:v:26:y:2008:i:5:p:529-553 is not listed on IDEAS
    2. John Cockburn & Erwin Corong & Caesar Cororaton, 2010. "Integrated Computable General Equilibrium (CGE) microsimulation approach," International Journal of Microsimulation, International Microsimulation Association, vol. 3(1), pages 60-71.
    3. François Bourguignon & Maurizio Bussolo & Luiz A. Pereira da Silva, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution : Macro-Micro Evaluation Techniques and Tools," World Bank Publications - Books, The World Bank Group, number 6586.
    4. Kym Anderson & Dominique van der Mensbrugghe, 2007. "Effects of multilateral and preferential trade policy reform in Africa: The case of Uganda," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(4), pages 529-550.
    5. Ole Boysen & Alan Matthews, 2008. "The Impact of Developed Country Agricultural Trade Liberalization on Poverty: A Survey," Working Papers hal-03416399, HAL.
    6. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    7. Roman Keeney & Thomas W. Hertel, 2009. "The Indirect Land Use Impacts of United States Biofuel Policies: The Importance of Acreage, Yield, and Bilateral Trade Responses," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 895-909.
    8. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
    9. Baunsgaard, Thomas & Keen, Michael, 2010. "Tax revenue and (or?) trade liberalization," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 563-577, October.
    10. Ole Boysen, 2016. "Food Demand Characteristics in Uganda: Estimation and Policy Relevance," South African Journal of Economics, Economic Society of South Africa, vol. 84(2), pages 260-293, June.
    11. Fontagné, Lionel & Laborde, David & Mitaritonna, Maria Cristina, 2008. "An Impact Study of the EU-ACP Economic Partnership Agreements (EPAs) in the Six ACP Regions," Conference papers 331780, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Todd Benson & Samuel Mugarura & Kelly Wanda, 2008. "Impacts in Uganda of rising global food prices: the role of diversified staples and limited price transmission," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 513-524, November.
    13. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    14. Peter Nijkamp & Jacques Poot, 2005. "The Last Word on the Wage Curve?," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 421-450, July.
    15. Geeta Kingdon & Justin Sandefur & Francis Teal, 2006. "Labour Market Flexibility, Wages and Incomes in Sub‐Saharan Africa in the 1990s," African Development Review, African Development Bank, vol. 18(3), pages 392-427.
    16. François Bourguignon & Maurizio Bussolo & Luis Pereira, 2008. "The Impact of Macroeconomic Policies on Poverty and Income Distribution," Post-Print halshs-00754864, HAL.
    17. Fontagne, Lionel & Laborde, David & Mitaritonna, Cristina, 2008. "An Impact Study of the Economic Partnership Agreements (EPAs) in the Six ACP Regions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44194, European Association of Agricultural Economists.
    18. Henning Tarp Jensen & Finn Tarp, 2005. "Trade Liberalization and Spatial Inequality: a Methodological Innovation in a Vietnamese Perspective," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 69-86, February.
    19. Matthias Busse, 2010. "Revisiting the ACP-EU economic partnership agreements — The role of complementary trade and investment policies," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 45(4), pages 249-254, July.
    20. Cororaton, Caesar B. & Cockburn, John, 2007. "Trade reform and poverty--Lessons from the Philippines: A CGE-microsimulation analysis," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 141-163.
    21. 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.
    22. Hisali, Eria, 2012. "Trade policy reform and international trade tax revenue in Uganda," Economic Modelling, Elsevier, vol. 29(6), pages 2144-2154.
    23. C. Milner & O. Morrissey & N. Rudaheranwa, 2000. "Policy and Non-Policy Barriers to Trade and Implicit Taxation of Exports in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 67-90.
    24. Lawrence E. Hinkle & Maurice Schiff, 2004. "Economic Partnership Agreements Between Sub‐Saharan Africa and the EU: A Development Perspective," The World Economy, Wiley Blackwell, vol. 27(9), pages 1321-1333, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edward J. Balistreri & Maryla Maliszewska & Israel Osorio-Rodarte & David G. Tarr & Hidemichi Yonezawa, 2016. "Poverty and Shared Prosperity Implications of Reducing Trade Costs Through Deep Integration in Eastern and Southern Africa," Working Papers 2016-07, Colorado School of Mines, Division of Economics and Business.
    2. Edward J Balistreri & Maryla Maliszewska & Israel Osorio-Rodarte & David G Tarr & Hidemichi Yonezawa, 2018. "Poverty, Welfare and Income Distribution Implications of Reducing Trade Costs Through Deep Integration in Eastern and Southern Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 27(2), pages 172-200.
    3. Isabel Teichmann, 2016. "CGE-Based Methods to Measure the Impact of Trade Liberalization on Poverty," DIW Roundup: Politik im Fokus 100, DIW Berlin, German Institute for Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ole Boysen & Hans Grinsted Jensen & Alan Matthews, 2016. "Impact of EU agricultural policy on developing countries: A Uganda case study," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(3), pages 377-402, June.
    2. Dorothée Boccanfuso & G. Rodolphe A. Missinhoun & Luc Savard, 2010. "Réformes economiques et croissance pro-pauvre : une application macro-micro aux Philippines," Recherches économiques de Louvain, De Boeck Université, vol. 76(3), pages 257-288.
    3. Axel Borrmann & Matthias Busse & Manuel De La Rocha, 2007. "Consequences of Economic Partnership Agreements between East and Southern African Countries and the EU for Inter- and Intra-regional Integration," International Economic Journal, Taylor & Francis Journals, vol. 21(2), pages 233-253.
    4. Ole Boysen & Ana Corina Miller & Alan Matthews, 2014. "Economic and household impacts of policy interventions in the Irish agri-food sector until 2020," The Institute for International Integration Studies Discussion Paper Series iiisdp445, IIIS.
    5. Ole Boysen & Alan Matthews, 2008. "The Impact of Developed Country Agricultural Trade Liberalization on Poverty: A Survey," Working Papers hal-03416399, HAL.
    6. Ole Boysen & Ana Corina Miller & Alan Matthews, 2016. "Economic and Household Impacts of Projected Policy Changes for the Irish Agri-food Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 105-129, February.
    7. Ole Boysen, 2019. "When does specification or aggregation across consumers matter for economic impact analysis models? An investigation into demand systems," Empirical Economics, Springer, vol. 56(1), pages 137-172, January.
    8. Ferreira , Francisco H. G., 2010. "Distributions in motion: economic growth, inequality, and poverty dynamics," Policy Research Working Paper Series 5424, The World Bank.
    9. Dorothée Boccanfuso & Véronique Gosselin & Jonathan Goyette & Luc Savard & Clovis Tanekou Mangoua, 2014. "An impact analysis of climate change and adaptation policies on the forestry sector in Quebec. A dynamic macro-micro framework," Cahiers de recherche 14-04, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    10. Phouphet Kyophilavong & Xaignasack Lassachack & Thanouxay Volavong, 2016. "Do cash transfers help the poor during trade liberalization? Evidence from Laos," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 19(4), pages 355-371, December.
    11. Nadia Belhaj Hassine & Veronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: A General Equilibrium Analysis," Working Papers 519, Economic Research Forum, revised 05 Jan 2010.
    12. Ole Boysen, 2013. "High food prices and their implications for poverty in Uganda - From demand system estimation to simulation," EcoMod2013 5438, EcoMod.
    13. James B Davies, 2009. "Combining microsimulation with CGE and macro modelling for distributional analysis in developing and transition countries," International Journal of Microsimulation, International Microsimulation Association, vol. 2(1), pages 49-56.
    14. Zhang, Xiao-Guang, 2015. "Incorporating household survey data into a CGE model," Conference papers 332628, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Anderson, Edward, 2020. "The impact of trade liberalisation on poverty and inequality: Evidence from CGE models," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1208-1227.
    16. Dorothée BOCCANFUSO & Massa COULABY & Govinda R TIMILSINA & Luc SAVARD, 2010. "Economic and Distributional Impact of Bio-Fuels in Mali," EcoMod2010 259600032, EcoMod.
    17. Jean-Marc Philip, 2006. "Le recours aux MEGC pour l’analyse de l’accord de partenariat économique entre l’union européenne et les pays ACP : une revue de la littérature," CAE Working Papers 92, Aix-Marseille Université, CERGAM.
    18. Dorothée Boccanfuso & Antonio Estache & Luc Savard, 2009. "Distributional impact of developed countries CC policies on Senegal : A macro-micro CGE application," Cahiers de recherche 09-11, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    19. Dorothée Boccanfuso & Luc Savard & Antonio Estache, 2013. "The Distributional Impact of Developed Countries’ Climate Change Policies on Senegal: A Macro-Micro CGE Application," Sustainability, MDPI, vol. 5(6), pages 1-24, June.
    20. Boysen, Ole & Matthews, Alan, 2012. "The differentiated effects of food price spikes on poverty in Uganda," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122445, European Association of Agricultural Economists.

    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:21:y:2017:i:2:p:353-382. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.