THE IMPACT OF DOMESTIC AND GLOBAL TRADE LIBERALIZATION ON FIVE SOUTHERN AFRICAN COUNTRIES

We compare the impact of alternative domestic and global trade liberalization scenarios on fiveeconomies in Southern Africa. The study applies a computable general equilibrium model thatemploys standardised 12-sector social accounting matrices for Malawi, Mozambique, Tanzania,Zambia, and Zimbabwe. The approach incorporates stylised features such as own-householdconsumption and marketing margins that are of particular importance when a majority ofagricultural producers are not sufficiently integrated into formal markets and thus rely on ownproduction to meet their daily diets. Hence, improved infrastructure implies lower marketingcosts and better market integration, which translates to increased production opportunities. Thecomparison of the results across all five countries reveals that common policy measures havedifferent impacts depending on the underlying economic structures.