Arbeitspapier

Trade liberalization and spatial inequality: A methodological innovation in Vietnamese perspective

In this paper we calibrate two static computable general equilibrium (CGE) models with respectively 16 and 5,999 representative households. Aggregated and disaggregated household categories are consistently embedded in a 2000 social accounting matrix for Vietnam, mapping on a one-to-one basis to each other. Distinct differences in poverty assessments emerge when the impact of trade liberalization is analyzed in the two models. This highlights the importance of modeling micro household behavior and related income and expenditure distributions endogenously within a static CGE model framework. Our simulations indicate that poverty will rise following a revenue-neutral lowering of trade taxes. This is interpreted as a worst case scenario, which suggests that government should be proactive in combining trade liberalization measures with a pro-poor fiscal response to avoid increasing poverty in the short to medium term. – poverty ; trade liberalization ; general equilibrium models ; Vietnam

ISBN
9291906220
Sprache
Englisch

Erschienen in
Series: WIDER Research Paper ; No. 2004/35

Klassifikation
Wirtschaft
Computable and Other Applied General Equilibrium Models
Measurement and Analysis of Poverty
Economywide Country Studies: Asia including Middle East
Thema
Armut
Räumliche Verteilung
Außenhandelsliberalisierung
Allgemeines Gleichgewicht
Vietnam
CGE-Modelling

Ereignis
Geistige Schöpfung
(wer)
Tarp Jensen, Henning
Tarp, Finn
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2004

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Tarp Jensen, Henning
  • Tarp, Finn
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2004

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