EU-ACP Economic Partnership Agreement (EPA): Implications for Government Revenue, Output Volatility and Income Inequality in Nigeria- An Integrated Model

📄 Project Abstract

The Cotonou accord CA of 2000 set in motion the negotiation of an economic partnership agreement EPA between the African, Caribbean and Pacific (ACP) countries and the European Union. The basic EU demand on ACP countries is the reduction of applied tariffs against EU imports through a compendium of evolving requirements of cooperation that will eventually lead to zero tariffs by 2020. Since inception, many studies have been conducted on the trade and growth effects of the agreement if eventually implemented. The current study adds to the body of these literatures by addressing the country specific implications of the trade arrangement on government revenue structure and its transmission effects on volatility and income equality in Nigeria, using two analytical approaches. First, the study used a Computable General Equilibrium simulation (CGES) to determine the impact of 0% and 25% tariff regimes on government oil and non-oil revenue (putting side by side the implications of considering...