Abstract:
The paper uses a micro-simulation computable general equilibrium (CGE) model
to study the impact on poverty of a complete removal of tariffs in Zimbabwe. The model
incorporates 14006 households derived from the 1995 Poverty Assessment Study Survey.
This paper’s novelty is that it is one among a small group of papers that incorporates
individual households in the CGE model as opposed to having representative households.
Using individual households allows for a comprehensive analysis of poverty. The
complete removal of tariffs favours exporting sectors. Poverty falls in the economy while
inequality hardly changes. The results differ between rural and urban areas.
