Modelling: Introduction to Economy-wide Policy Impact Analysis
Input-output analysis, complemented by means of Social Accountring Matrices (SAMs), is often used as a tool to conduct meso-level economic enquiry. Researchers frequently use these tools to analyse the impact on production, the envuironment, prices, employment and income effects of policy-related changes in international trade, taxes, fiscal policy and investment. Economic modelling techniques that capture economy-wide impacts of policy changes are increasingly being used in South African academic, consulting and research circles. To cater for this increased demand, the School of Economics at the University of Cape Town, in conjunction with TIPS, offered a one-week course in economy-wide policy impact analysis in 2005.
As part of the SADC Trade Development Programme’s capacity-bulding component, TIPS sponsored nine participants from Lesotho, Swaziland and Botswana to attend the course, including officials from the Economic Planning and Dvelopment, and Trade and Industry ministries, and Lesotho’s Central Bank.