VIJAY K. BHASIN AND CAMARA K. OBENG, UNIVERSITY OF CAPE COAST, GHANA.
Ghana has adopted the Poverty Reduction Strategy, which emphasizes increased focus on poverty reduction in the design and implementation of its policies. Poverty could be reduced through trade liberalization and improvement in the technological knowledge. Trade liberalization is defined as the elimination of import and export duties on goods and services. Improvement in the technological knowledge shifts the production function of each sector upward. The study uses static CGE model and examines the impact of trade liberalization and technological change on the poverty and income distributions of households. The study has shown that elimination of import and export duties on goods and services accompanied by improvement in the technical knowledge of agricultural, industrial, and services sectors reduce the incidence, depth and severity of poverty of households. The elimination of import and export duties accompanied by improvement in the technical knowledge of agricultural and industrial sectors improve the income distributions of households, whereas improvement in the technical knowledge of services sector worsens the income distributions of households.
Keywords: Globalisation; Poverty; Technology; SAM; CGE; Density Function.