WORLD FRAGMENTATION OF PRODUCTION AND DEMAND DIFFERENTIATION ON CGE MODEL: A METHODOLOGICAL PROPOSAL

Implementing a development strategy in the context of a fragmented global strategy consists in specializing in the production of a specific link of the value chain. Yet, modelling this strategy within the framework of a computable general equilibrium model requires the differentiation of the uses of goods, which is seldom performed. We offer a methodology which makes that discrimination of demand possible in order to analyse the impact of the reform of a tax policy which is specific to overseas departments, dock dues in Reunion Island.