The model, which is calibrated to a Social Accounting Matrix for 1994, is distinguished by an explicit separation of activities, factors, and households into rural and urban. The simulation results indicate that reduced agricultural protection would generate significant aggregate welfare gains at the same time a significant part of the disadvantaged rural population would lose strongly. The impact of industrial tariff cuts is small. The outcome is less unfavorable for rural households over a slightly longer time frame where labor migration between agriculture, the rest of the rural economy and urban areas is feasible. Download full-text discussion paper .
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