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Journal of Public Administration (JOPA)

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ISSN : 2
GDP Growth and Welfare Effects of the African Continental Free Trade Agreement for Ghana

Author: Moses M Kupabado and Juergen Kaehler

Affiliation: Friedrich-Alexander University of Erlangen-Nuremberg

Source: Journal of Public Administration, 2024-06-04 13:55:43

Accreditation: Department of Higher Education and Training (DHET)



Abstract: GDP Growth and Welfare Effects of the African Continental Free Trade Agreement for Ghana

We study the price, GDP growth, trade, and welfare effects of the African Continental Free Agreement (AfCFTA) for Ghana with a computable general equilibrium (CGE) model based on the Global Trade Analysis Project (GTAP) 10 database. The policy shock consists of complete tariff elimination on all imports from the rest of Africa into Ghana. We create an aggregation of the model consisting of three regions (Ghana, rest of Africa (ROA) and rest of the world (ROW)), six sectors (grain crops, meat and livestock, mining and extraction, food processing, manufacturing, and services), and five factors of production (land, unskilled labour, skilled labour, capital and natural resources). Land and natural resources are assumed to be immobile between sectors, but labour and capital are mobile. The sectoral aggregation reflects the main categories of economic activities in Ghana. The implementation strategies include standard multi-regi