nep-cmp New Economics Papers
on Computational Economics
Issue of 2007‒08‒14
two papers chosen by
Stan Miles
Thompson Rivers University

  1. THE IMPACT OF TRADE LIBERALISATION ON WATER USE: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS By Maria Berrittella; Katrin Rehdanz; Richard S.J. Tol; Jian Zhang
  2. ChinAfrica : How can the Sino-African cooperation be beneficial for Africa ? By Luca, MARCHIORI

  1. By: Maria Berrittella; Katrin Rehdanz; Richard S.J. Tol (Economic and Social Research Institute, Dublin, Ireland); Jian Zhang
    Abstract: We used that GTAP-W model – GTAP5 with water resources added – to estimate the impact of hypothetical Doha-like liberalization of agricultural trade on water use. Three conclusions emerge. First, the change in regional water use is less than 10%, even if agricultural tariffs are reduced by 75%. Second, patterns are non-linear. Water use may go up for partial liberalization, and down for more complete liberalization. This is because different crops respond differently to tariff reductions, but also because trade and competition matter too. Third, trade liberalization tends to reduce water use in water scarce regions, and increase water use in water abundant regions, even though there no water markets in most countries.
    Keywords: Computable General Equilibrium, Trade Liberalization, Water Policy, Water Scarcity
    JEL: D58 F13 Q17 Q25
    Date: 2007–08
    URL: http://d.repec.org/n?u=RePEc:sgc:wpaper:142&r=cmp
  2. By: Luca, MARCHIORI
    Abstract: In this paper, different scenarios of increased cooperation between China and African countries are simulated. Recent intensification of political and economic ties between China and Sub-Saharan Afreican countries may give hope that an economic improvement in Sub-Saharan Africa (SSA) is possible. Three channels may lead to a catching-up for Africa with China : a reduction in AfricaÕs investment risk, an increase in its total factor productivity (TFP) and an improvement of its worker skills. A computable general equilibrium model of the world economy is used, that shares the world in 10 regions, among which Sub-Saharan Africa and China. Three scenarios are considered in which, by 2100, Africa will have reduced simultaneously its gaps in investment risk, TFP and eduction to China by either 20% (scenario 1), 40% (scenario2) or 60% (scenario3). The effects on the Sub-Saharan African economy are very promising. The results show that, already in 2050, Africa will have increased its per capita Gross Domestic Product (GDP) by 50% with scenario1, 80% with scenario 2 and by 125% with scenario 3.
    Keywords: OLG-CGE Model, Catching-up, sSmulations, Africa, China
    JEL: E27 J11 O47 O55 O57
    Date: 2007–04–24
    URL: http://d.repec.org/n?u=RePEc:ctl:louvec:2007014&r=cmp

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