Antonio Yúnez Naude

Guatemala Application of a CGE Model

Abstract This paper presents the results of our quantitative inquiries into the impact of some economic policy reforms on the Guatemalan economy. The paper begins with a brief description both of Guatemala’s macroeconomic situation and of the changes in economic policy implemented by recent administrations. The second part of the paper describes the main features of the CGE together with the results of simulation exercises. We conclude with a summary of our most important findings and some general comments. One of the results underscores the dilemma of trade liberalization in several Latin American countries which is the conflict between the growth in efficiency from exchange and the loss of alimentary self-sufficiency.