Macroeconomic Shocks Simulations in a CGE model for Haiti
- Improved terms of trade lead to GDP growth, private consumption, and investment increases.
- Increased remittances lead to exchange rate appreciation and trade deficit increase.
- Decreased foreign capital inflows negatively impact investment and growth.
- The apparel industry expansion appreciates the real exchange rate.
- Poverty decreases with improved economic conditions and increases in remittances.
This document presents a series of simulations related to macroeconomic shocks in Haiti, analyzing the results using both a Computable General Equilibrium (CGE) model and a microsimulation model. The simulations explore the impact of various external factors on the Haitian economy. Scenarios include increases in the world export price of textiles, decreases in the world price of imports, increases in remittances, and decreases in foreign capital inflows. The analysis focuses on key macroeconomic indicators such as GDP growth, private consumption, investment, trade, and unemployment, as well as sectoral and distributive effects.
How to cite
Inter-American Development Bank (IDB), 2019, Macroeconomic Shocks Simulations in a CGE model for Haiti, https://publications.iadb.org/en/macroeconomic-shocks-simulations-cge-model-haiti