Impact of the implementation of the African Continental Free Trade Area (AfCFTA) on the Algerian economy

Samira Ouala

No 333444, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The main aim of this paper is to assess the unilateral impact of the establishment of the African Free Trade Area on the Algerian economy. Therefore, we used a computable general equilibrium model, applied on an Algerian social accounting matrix from 2018. In fact, the analysis of the impact of this agreement is based on two simulations: the first consists of evaluating the elimination of half the tariff barriers, while the second simulation is devoted to the total elimination of tariff barriers. The impact study is measured on growth, income, employment and internal and external balance. Where, trade liberalization in both scenarios has a neuter effect on GDP. Furthermore, trade increases in all scenarios, increasing import bills which increase considerably from the African zone. Moreover, the simulation, causes a decrease in the State’s revenues. Hence, the government deficit in relation to GDP would increase in the both scenarios. Finally, the impact on welfare, shows a marginal gain in household welfare.

Keywords: International Relations/Trade; International Relations/Trade (search for similar items in EconPapers)
Pages: 17
Date: 2022
New Economics Papers: this item is included in nep-ara and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333444

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