Article ID: | iaor20107307 |
Volume: | 26 |
Issue: | 2 |
Start Page Number: | 151 |
End Page Number: | 170 |
Publication Date: | Mar 2008 |
Journal: | Development Policy Review |
Authors: | Ben Hammouda Hakim, Osakwe Patrick N |
Keywords: | Africa, input-output analysis |
Computable general equilibrium models are widely used for trade policy analyses and recommendations. There is, however, increasing discomfort with the use of these models, especially in Africa. This article demonstrates that the results of several such studies of the impact of trade reforms in Africa differ drastically in terms of both magnitude and direction, failing to take account of key features of African economies. It also outlines potential consequences of the misuse of CGE models for policy evaluation and suggests pitfalls to be avoided.