Poverty Effects from Reforming the Common Agriculture Policy in A Spatially Heterogeneous Agricultural Economy

Abstract This paper analyzes the effects of reforming the Common Agricultural Policy in the European Union on poverty in Tunisia. The analysis is based on a spatial dynamic general equilibrium model that captures the economies of four regions with their corresponding 10 household categories, 21 activities, three types of labor, and three categories of land. The results of the different simulations suggest a relatively small impact at the macroeconomic level. However, important disparities in terms of economic and poverty impact among the regions are also observed. These results reveal the importance of an depth regional-level analysis compared with the country-level analysis, where the heterogeneity of households in terms of structure of expenditures and incomes, as well as the regional structure of GDP, are not taken into account. Arabic Abstract: