MPIA-19971 The impact of fiscal reforms on poverty and income distribution in Tanzania: Macro-micro simulation modelling


This study will analyze the impact of fiscal reforms on income distribution as well as monetary poverty in Tanzania. To this end, the study will use fiscal policy instruments which are indirect taxes and government spending. Specifically, the study will find out how shocks on fiscal policy influences poverty levels and income distribution at the macro level and how these induced changes at the macro level are being transmitted to the households as far as monetary poverty and income distribution is concerned and what accompanying or alternative policies might be implemented in order to safeguard more equitable income distribution as well as diminished monetary poverty amongst households. The study will use 2009 Social Accounting Matrix for Tanzania that was originally developed by International Food Policy Research Institute (IFPRI) researchers Pradesha A. and Diao X in 2014. This SAM will be updated by using 2016 data to be obtained from National Bureau of Statistics. The model to be used will be the standard static CGE model based on the PEP-1-1 (Version 2.1) model. The reason for the use of this class of economic model is that it is static model which analyses medium term impact of policy changes, it uses actual economic data to estimate how the economy structure react to these changes/shocks and provide a clear understanding of transmission mechanism. Micro simulation will be conducted through using the 2012 household budget survey for Tanzania.


Project leader: Asiya Maskaeva

Project researchers: Nicodemas Lema | Joel Mmasa | MGENI MSAFIRI

Scientific mentors: Helene Maisonnave | Martin Henseler

Journal publication

Authors Co-Authors Title of paper Title of Economic Review Bibliographic references
Asiya Maskaeva Nicodemas Lema, Joel Mmasa, Msafiri Mgeni Tax Instruments For Tanzanias Industrialization Growth The European Proceedings of Social & Behavioural Sciences

Volume LXXVII - MTSDT 2019, pp 891-900 

Working Papers

Title Modified Size Comments Recommendations
The Impact of Fiscal Policy on Income Distribution in Tanzania: A Computable General Equilibrium Analysis 2019-04-30 8.77MB 0 0

Policy Briefs

Title Modified Size Comments Recommendations
How VAT reductions on capital commodities can foster industrialization and boost growth in Tanzania 2019-03-22 564.69kB 0 0

Final report

Title Modified Size Comments Recommendations
2018-11-07 776.83kB 0 0


Title Modified Size Comments Recommendations
2017-09-21 141.80kB 0 0

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