Learning economy-wide modelling for policy analysis

The Inclusive Growth in Mozambique project delivered a training workshop on CGE modelling on 2-6 July in Maputo, led by Dirk van Seventer, a consultant with UNU-WIDER.

This training session was the second part of a workshop series that provided an introduction to economy-wide modelling for policy analysis. The Computable General Equilibrium (CGE) models are economic models, that use statistical data to estimate how changes in policies, technology and other external factors might affect the economy.

The event gathered together development partners, public sector officers, academics and students from the Eduardo Mondlane University along with trainees from the project. The training provided a synthesised state-of-the-art of CGE modelling and its applicability in the Mozambican context. The topics covered included how to model unemployment, and external shocks. To illustrate the use of the technique the training supervisor showed examples in excel that had an interface in GAMS modelling system. A strong emphasis was given to the interpretation of results.

“The course could be very helpful for our interns as a methodological tool for assessing the effects of macro policies on the well-being of Mozambican households”, said Paola Ballon, UNU-WIDER research fellow, who provides technical assistance to the Ministry of Economics and Finance.

This training was just one event in a range of activities the project is delivering to build capacity with our Mozambican research partners, the Ministry of Economics and Finance and the Faculty of Economics of Eduardo Mondlane University.