oa Botswana Institute of Administration & Commerce Journal - Macroeconomic and trade implications of import tariff reductions on the economy of Botswana: trade liberalisation through the WTO

Volume 4, Issue 1
  • ISSN : 1729-1070



Two sets of issues loom large on the economic horizon of Botswana: The issue of diversification of the economy away from the mineral sector to other non-traditional sectors and that concerning the income and equity effects of trade liberalisation. In this paper, simulations with a Computable General Equilibrium (CGE) model of Botswana are used to analyse aspects of these issues. The primary database used is a 1993/94 Social Accounting Matrix (SAM) for Botswana. To capture these policy changes the trade liberalisation policy simulations, were run to compare scenarios where, as a result of WTO, tariffi are lowered significantly. In general the analysis revealed that the trade liberalisation strategy may have a positive impact on most of the sectors of the economy.

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