Dynamic Effects in Senegal of the Regional Trade Agreement Among UEMOA Countries

Domain:

socioeconomic

Record type:

paper

Creator:

Yaz

Publisher:

Host:

In an international setting characterized by a proliferation of regional trade agreements, seven countries of the West African Economic and Monetary Union (UEMOA) have created a customs union. The reform raises concerns in some countries, like Senegal, where government is dependent on tariff revenues. The author builds an intertemporal general equilibrium model to analyze the dynamic effects of the reform. Simulation results highlight the desirability for Senegal to pursue regional economic integration along with an outward‐looking strategy. The reform is welfare‐improving and expansionary with some sectoral diversity. In the long run, government and foreign debts increase.

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