Oil Price Shock and Poverty in a CGE Framework

A 23-sector, 3-factor and 9-household group computable general equilibrium (CGE) model with neo-classical closure has been used to analyse the impact of international oil price shock on the welfare and poverty of socio-economic household groups. A sensitivity analysis has been carried out to look into the impact of change in the elasticity of substitution between imports of crude oil and domestically produced oil on the household groups.