ISSN 2756-3456
Global Journal of Sociology and Anthropology Vol. 8 (10), pp. 001-009, October, 2019. © International Scholars Journals
Full Length Research Paper
Impact of fiscal policies aimed at increasing aggregate investments on employment and household incomes in Senegal
Latif Dramani1 and Ralitza Dimova2
1UFR SES –CREFAT Université de Thiès BP: 947 Thiès Sénégal.
2University of Manchester, United Kingdom.
Accepted 21 April, 2019
Abstract
This study explores the impact of budgetary policies, aimed at an increase in aggregate investments in Senegal on employment and household incomes. The analysis is based on a computable general equilibrium framework, which allows us to capture the multi-faceted microeconomic implications of the chosen macroeconomic policies and uses very interesting recent macro and micro-level data sources. Our results indicate that policy makers in Senegal face serious dilemmas. Reliance on foreign sources of finance tends to improve the welfare of households in the short-to-medium run, but at the expense of further decreasing the international competitiveness of the economy. Drastic reduction of the role of public administration in the economy is a viable alternative that addresses these issues, but only at the expense of deterioration of the incomes of households, especially those involved in the informal sector.
Key words: Investments, computable general equilibrium (CGE) model, employment.