Fiscal Policy Reforms in Senegal. Single Country CGE Analysis with highly desegregated SAM
2017
BOULANGER Pierre | DUDU Hasan | FERRARI Emanuele | MAINAR CAUSAPÉ Alfredo
Senegal is implementing the development plan, namely "Plan Sénégal Emergent" (PSE), since 2014 to achieve "an emerging Senegal in 2035 with social solidarity and the rule of law". In the first two years, Senegal was successful in attaining significantly higher GDP growth (more than 6%) and macroeconomic stability (IMF, 2017a). However, the plan envisages increasing public investment and thus spending to improve the infrastructure for a better business environment without hampering the macroeconomic balances and keeping debt stress manageable. This paper aims analysing different policy options for reforming the fiscal policy in Senegal by using a recursive dynamic CGE model with a newly developed 2014 SAM for Senegal. We compare the impact of these options on Senegalese economy by giving a special focus to the food and nutrition security, especially in the poorest households.
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