Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63510
Authors: 
Fujii, Tomoki
Roland-Holst, David
Year of Publication: 
2007
Series/Report no.: 
Research Paper, UNU-WIDER, United Nations University (UNU) 2007/12
Abstract: 
Trade policies can promote aggregate efficiency, but the ensuing structural adjustments generally create both winners and losers. From an incomes perspective, trade liberalization can raise GDP per capita, but rates of emergence from poverty depend upon individual household characteristics of economic participation and asset holding. To fully realize the growth potential of trade, while limiting the risk of rising inequality, policies need to better account for microeconomic heterogeneity. One approach to this is the geographic targeting, which shifts resources to poor areas. This study combines an integrated microsimulation-CGE model with the small area estimation to evaluate the spatial incidence of Vietnam's accession to the WTO. Provincial-level poverty reduction after full liberalization was heterogeneous, ranging from 2.2 per cent to 14.3 per cent. Full liberalization will bene?t the poor on a national basis, but the northwestern area of Vietnam is likely to lag behind. Furthermore, poverty can be shown to increase under comparable scenarios.
Subjects: 
trade liberalization
microsimulation
computable general equilibrium
small-area estimation
Vietnam
JEL: 
F13
I32
O24
ISBN: 
9291909513=978-92-9190-951-3
Document Type: 
Working Paper

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