Title:
THE INFLUENCE OF WORLD TRADE ORGANISATION FREE TRADE AGREEMENT TARIFF RATES ON KENYA

Authors:
Dr. Edwin Jairus Simiyu, Dr. Gift Mugano

Volume - 2 Issue - 9, Pages - 4414-4433

Abstract:
This study offers a quantitative evaluation of the possible effects of trade, revenue, and welfare effects of the World Trade Organisation Free Trade Organisation (WTO FTA) on Kenya. The study applied the Software for Market Analysis and Restrictions on Trade (SMART) partial equilibrium model for its analysis. The findings of this study show that the WTO FTA will be favourable for Kenya as a country, due to benefits in terms of trade expansion estimated at US$ 995.16 million, plus benefits in consumer welfare effects to the value of US$ 103.98 million. Nevertheless, Kenya will incur losses in revenue amounting to US$817.15 million. The efficient management of the WTO FTA should go along with steps to develop revenue collection from other sources, for example, from income tax and Value Added Tax.

Cite this Article:

[Simiyu, Edwin Jairus, and Gift Mugano. "THE INFLUENCE OF WORLD TRADE ORGANISATION FREE TRADE AGREEMENT TARIFF RATES ON KENYA." International Journal of Social Science and Economic Research, vol. 2, no. 9, 2017, pp. 4414-4433. September.]