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The Distributive Impact of Vietnam's Accession to the WTO

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  • Jean-Pierre Cling
  • Mohamed Ali Marouani
  • Mireille Razafindrakoto
  • Anne-Sophie Robilliard
  • Francois Roubaud

Abstract

Vietnam joined the World Trade Organization in January 2007. The fast economic growth observed for the last decades has resulted in a strong reduction of poverty and increasing inequalities. This paper evaluates the potential distributive impact of the WTO accession using a macro-micro model. The latter couples a CGE model, including imperfect labour markets, with an accounting micro-simulation model. We do not limit ourselves to the tariff impact. We also evaluate the impact of improved market access and of increased foreign direct investment. Our simulations show that WTO accession will have mainly four types of distributional effects: job gains, especially in the manufacturing sector; growth in real wages, especially for unskilled workers; reduction of poverty; and increase in inequalities between rural and urban areas.

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Bibliographic Info

Article provided by CEPII research center in its journal Economie Internationale.

Volume (Year): (2009)
Issue (Month): 118 ()
Pages: 43-71

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Handle: RePEc:cii:cepiei:2009-2tb

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Keywords: International trade; WTO; labour; inequalities; Vietnam;

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Cited by:
  1. Jean-Pierre Cling & Mireille Razafindrakoto & Francois Roubaud, 2010. "Assessing the Potential Impact of the Global Crisis on the Labour Market and the Informal Sector in Vietnam," Working Papers 05, Development and Policies Research Center (DEPOCEN), Vietnam.
  2. Douillet, Mathilde, 2012. "Trade and agricultural policies in Malawi: Not all policy reform is equally good for the poor," MPRA Paper 40948, University Library of Munich, Germany.
  3. Roubaud, François & Razafindrakoto, Mireille & Nguyễn, Hữu Chí & Cling, Jean-Pierre, 2012. "Urbanization and access to labour market in Vietnam: Weight and characteristics of the informal sector," Economics Papers from University Paris Dauphine 123456789/10758, Paris Dauphine University.
  4. Jean-Raphael Chaponniere & Jean-Pierre Cling, 2009. "Vietnam's Export-Led Growth Model and Competition with China," Economie Internationale, CEPII research center, issue 118, pages 101-130.
  5. Mathilde Douillet, 2012. "Trade policies and agriculture in Sub-Saharan Africa: Comparative analysis in a Computable General Equilibrium framework," Sciences Po publications info:hdl:2441/45eb019724s, Sciences Po.
  6. Roubaud, François & Nordman, Christophe Jalil & Nguyen, Huu Chi, 2013. "Who Suffers the Penalty? A Panel Data Analysis of Earnings Gaps in Vietnam," Economics Papers from University Paris Dauphine 123456789/12321, Paris Dauphine University.
  7. Nordman, Christophe Jalil, 2009. "Vulnérabilité au travail," Economics Papers from University Paris Dauphine 123456789/10805, Paris Dauphine University.

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