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Submitted by Drake Kyalimpa on
Dear Shanta, Thank you once again for allowing us to comment on the role of CGE modeling. Please find the edited version of my article: Your article together with Robinson will be worth reading. You have already contributed immensely in this subject area. Coming from an econometrics background, I personally take great pride in the use of SAM-CGE Modeling framework in informing policy makers of the impact of their actions on the economy, more particularly on the microeconomy. We would not know or use traditional econometric tools to analyse the impact of policies on socioeconomic system without CGE modeling. Your continued enlightment in this area is much appreciated. I have analysed the Ugandan economy using the SAM-CGE modeling. I was particularly interested in the determination of key sectors and how different policies affect these sectors/agents. My results indeed reflect the true behaviour of the Ugandan economy, especially the finding that the agriculture sector seems to be the most important sector for poverty alleviation and growth 9sector with strong forward and backward linkages). I think it is fair to say that developing countries will be fairly served if they concetrated the limited resources to sectors that have significant linkages with the rest of the economy. Those sectors that can spur growth while generating significant reditributive effects (i.e. high employment, household and factor incomes) rather than waste resources in non-productive sectors. I would like more insights on dynamic CGE modeling and how the finacial sector can be modeled within the CGE framework. There are not so many studies that have analysed the role of the finacial sector. I am particularly interested in a simple model that you might address the modeling of the financial sector in the SAM-CGE framework. Looking forward to reading your article. Kind regards, Drake Kyalimpa