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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/52451
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| Title: | | Reducing tariffs according to WTO accession rules: The case of Vietnam  |
| Authors: | | Fosse, Henrik Barslund Raimondos-Møller, Pascalis |
| Issue Date: | | 2011 |
| Series/Report no.: | | CESifo working paper: Trade Policy 3628 |
| Abstract: | | When Vietnam entered WTO in 2007 it was granted an accession period up to 2014. During this period tariffs would have to fall according to the accession agreement. This paper evaluates this 2007-2014 trade liberalization by building an applied general equilibrium model and calibrating it to the Vietnamese data. The model pays careful attention to the fact that Vietnam has many state-owned enterprises that do not behave in a profit maximizing way. The model simulations show that the WTO imposed tariff reforms will reduce the overall welfare level of the Vietnamese households. Moreover, the biggest loss of income will take place among the poor rural households in Vietnam. We propose other tariff reforms that both raise overall welfare and reduce income inequality. |
| Subjects: | | Vietnam WTO accession trade reforms state-owned enterprises |
| JEL: | | F14 F17 C68 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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