The process of trade liberalisation and market-oriented economic reforms was initiated in many developing countries in early 1980s; and it intensified in 1990s. In 1991, Zimbabwe was assisted by the IMF to implement trade-policy reforms under Economic Structural Adjustment Programme (ESAP). After adopting ESAP, the country witnessed soaring balance-of-payment problems, contraction of output, unemployment and the loss of government revenue. A number of factors, which were at play resulted in dismal economic performance under ESAP. These factors still exist, in addition to inter alia weak economic policies, structural rigidities and weak institutions. However, notwithstanding this controversy, the country continuously opened its economy under Common Market for Eastern and Southern Africa (COMESA), Southern Africa Development Community (SADC), World Trade Organisation (WTO), Economic Partnership Agreements (EPAs) and bilateral agreements. It is against this background that this study is undertaken, in order to evaluate the impact of different trade-policy regimes on trade, welfare and revenue in Zimbabwe. This study used two models: World Integrated Trade Solutions/Software for Market Analysis and Restrictions on Trade (WITS/SMART) and Tariff Reform Impact Simulation Tool (TRIST). The WITS/SMART model was used because of its ability in analysing the tariff effect of a single market on disaggregated product lines. The model also has the capability to analyse the effects of trade-policy reforms in the presence of imperfect substitutes. In order to complement the WITS/SMART model, a TRIST model was also used. The use of the TRIST model enabled the study to evaluate the impact of trade reforms on VAT, excise duties, collected and statutory revenue – which the WITS/SMART model had overlooked. Using the WITS/SMART model, the study considered seven trade-liberalisation frameworks for Zimbabwe: full implementation of the SADC free trade agreement (FTA), SADC common external tariff (CET), COMESA CET, COMESA FTA, EPAs, BFTAs and WTO FTA.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:9025 |
| Date | January 2013 |
| Creators | Mugano, Gift |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Doctoral, DPhil |
| Format | xxii, 333 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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