The poverty Impacts of the Doha Round in Cameroon : The Role of Tax Policy

摘要: The authors aim to assess the possible impacts of Doha Round negotiations on poverty in Cameroon. During recent period economic recovery, Cameroon enjoyed a sharp decline poverty, with headcount index falling from 53.3 percent inhabitants 1996 40.2 2001, mostly due growth rather than redistribution. Will current trade under reinforce or curb this trend? They apply computable general equilibrium (CGE) microsimulation model that involves 10,992 households order address question. find be poverty-reducing for For whole country, estimate net number people who are lifted out is 22,000 following scenario. Further investigations indicate more ambitious world liberalization leads greater alleviation at national level, while Cameroon's domestic has adverse and inequality impacts-despite giving rise higher aggregate welfare. Under scenario, cuts tariffs very small (the average tariff rate moves 11.79 base run merely 11.66 percent) so effects prices offset own If rest full liberalizations combined, outweigh favorable outcomes liberalization. results suggest furthermore choice tax replacement instrument can have an important bias impacts: gets worse country case study when using imperfect value-added instead neutral compensate lost revenue, even consumption tax. Key reasons here supplementary distortions which nil greatest In addition, accompanying measures should considered avoid increases framework Economic Partnership Agreements currently negotiation between African, Caribbean, Pacific (ACP) countries European Union, propose drastic dismantlement ACP over next few years.