This dissertation aims to provide a comprehensive analysis using a CGE model for the economy of Côte d'Ivoire, of the possible effects of some of the policy measures already implemented or envisaged by the government. It further explains the mechanisms through which they affect different economic agents, like the household, the firms and the government. We reexamines the perception that the import substitution based industrial development strategies and the export-led agricultural based development policies followed by Côte d'Ivoire after independence from France created a bias in resource allocation against agriculture. A major component of most of the structural adjustment programs undertaken in Côte d'Ivoire under the guidance of the World Bank has been to “get the prices right” as it was widely believed that the indirect tax and subsidy structure was heavily biased against agriculture. Using a static Computable General Equilibrium Model, we show that by 1986 reforms had eliminated the bias against agriculture but that the 1994 devaluation of the CFA franc and its accompanying policies reintroduced a resource allocation bias against agriculture.

Next, since there seem to be a definite push toward trade liberalization in Côte d'Ivoire, we use a static CGE model with imperfect competition, to see whether import liberalization will have “pro-competitive” effects in the Ivorian industrial sector which has been dominated by monopolies for a long time. We also analyze the welfare implications of trade liberalization.

Finally, using a dynamic general equilibrium model we analyze the distributional and welfare implications of three different revenue neutral policies. The first one is full imports liberalization as the prospect of free trade with the European Union (as stipulated by the ACP/EU trade agreement) looms in the near future for Côte d'Ivoire. The second one is the extension of the deduction of VAT payments on intermediate inputs and investments to the agricultural sector. The third and main reform studied is the actual harmonization of domestic consumption and trade taxes with the simultaneous introduction of a uniform VAT rate on all goods and services together with the implementation of the Common External Tariff introduced with the creation of a custom union within the West African Economic and Monetary Union (WAEMU) in 2001.