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Trade Policy Reforms and the Structure of Protection in Vietnam

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Author Info
Prema-chandra Athukorala

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Abstract

This paper examines the current state of the trade policy regime in Vietnam against the backdrop of market-oriented policy reforms undertaken over the past one-and-a-half decades. The core of the paper is an in-depth analysis of the structure of protection, focusing on both incentives for import-competing production and the bias in the incentive structure against export production compared to import-competing production. It is found that, despite notable reform efforts, the structure of protection in Vietnam is still out of line with that of the major trading nations in the region, in terms of the level and the inter-industry dispersion of nominal and effective protection rates. There is a clear anti-export bias in the incentive structure, even though the degree of the bias has considerably declined over the years. There is no evidence to justify the existing protection structure on grounds of infant industry protection or employment generation. Copyright 2006 The Author
Journal compilation 2006 Blackwell Publishing Ltd .

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-9701.2006.00776.x
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Publisher Info
Article provided by Blackwell Publishing in its journal World Economy.

Volume (Year): 29 (2006)
Issue (Month): 2 (02)
Pages: 161-187
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Handle: RePEc:bla:worlde:v:29:y:2006:i:2:p:161-187

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Auffret, Phillipe, 2003. "Trade reform in Vietnam : opportunities with emerging challenges," Policy Research Working Paper Series 3076, The World Bank. [Downloadable!]
  2. David Greenaway & Chris Milner, 2003. "Effective Protection, Policy Appraisal and Trade Policy Reform," The World Economy, Blackwell Publishing, vol. 26(4), pages 441-456, 04. [Downloadable!] (restricted)
  3. Hill, Hal, 2000. "Export Success Against the Odds: A Vietnamese Case Study," World Development, Elsevier, vol. 28(2), pages 283-300, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Prema-chandra Athukorala, 2008. "Export Performance in the Reform Era:Has India Regained the Lost Ground?," ASARC Working Papers 2008-03, Australian National University, Australia South Asia Research Centre. [Downloadable!]
  2. Athukorala, Prema-chandra & Huong, Pham Lan & Thanh, Vo Tri, 2007. "Distortions to Agricultural Incentives in Vietnam," Agricultural Distortions Working Paper 48475, World Bank. [Downloadable!]
  3. Pham, Hung T, 2006. "Rural Nonfarm Employment Under Trade Reform Evidence From Vietnam, 1993-2002," MPRA Paper 6476, University Library of Munich, Germany. [Downloadable!]
  4. Kokko, Ari & Sjöholm, Fredrik, 2004. "The Internationalization of Vietnamese SMEs," EIJS Working Paper Series 193, The European Institute of Japanese Studies, revised 14 Oct 2004.
  5. Thoburn, John, 2009. "Vietnam as a Role Model for Development," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Barbara Coello, 2008. "Agriculture and trade liberalization in Vietnam," PSE Working Papers 2008-75, PSE (Ecole normale supérieure). [Downloadable!]
  7. Mani, Muthukumara & Jha, Shreyasi, 2006. "Trade liberalization and the environment in Vietnam," Policy Research Working Paper Series 3879, The World Bank. [Downloadable!]
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