Economic Reseach Forum.

Abstract EN

This paper develops a dynamic computable general equilibrium (CGE) model incorporating trade facilitation aspects.

This paper’s contributions are twofold: theoretical and empirical.

First, this paper attempts to model trade facilitation explicitly in a dynamic CGE model applied.

On the empirical side, I estimate, not assume, the tariff equivalent of red tape and related procedures at sectoral level.

I use the ad valorem tariff equivalents of time to import and to export that have been estimated in a companion paper and I take into account the cost of such a process.

To do so, I modify the Exter model that is calibrated on the Egyptian social accounting matrix of 2000/2001.

My main findings show that, when trade facilitation is modeled precisely, i.e.

by taking into account its cost as well as the tariff equivalents of its aspects, the impact of such a process is reduced.

Meanwhile, its impact remains higher than trade liberalization.

Moreover, some sectors witness a significant expansion more than others, especially processed food, garments and high value added products.