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Trade and Development: Lessons from Vietnam's Past Trade Agreements

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Author Info

  • Abbott, Philip
  • Bentzen, Jeanet
  • Tarp, Finn

Abstract

Summary History, not predictions of CGE models or cross-country growth studies, shows a strong relationship between trade and development. Vietnam's experience with bilateral trade agreements, comparing actual outcomes with predictions from existing models, demonstrates this and the limitations of research methodologies. Forecasts for Vietnam greatly underestimated the impact of past agreements because tariff reform was not the main factor driving adjustments. Addressing market imperfections through institutional reform was central to bringing output and trade expansion. Key questions for future research are whether policy reform will result in new institutional changes, and how resulting incentives determine the evolution of investment by sector.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 2 (February)
Pages: 341-353

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:2:p:341-353

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: trade and development trade liberalization bilateral trade agreements WTO accession Vietnam;

References

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Citations

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Cited by:
  1. Coxhead, Ian & Chan, Nguyen Van, 2011. "Vietnam's New Environmental Tax Law: What Will It Cost? Who Will Pay?," Staff Paper Series 561, University of Wisconsin, Agricultural and Applied Economics.
  2. Mustapha K. Nabli, 2011. "The Great Recession and Developing Countries : Economic Impact and Growth Prospects," World Bank Publications, The World Bank, number 2539, October.
  3. Marco Alderighi, 2013. "Air accessibility and the export of Italian manufacture in Europe: Evidence at regional level," ERSA conference papers ersa13p1304, European Regional Science Association.
  4. Coxhead, Ian & Wattanakuljarus, Anan & Nguyen, Chan V., 2013. "Are Carbon Taxes Good for the Poor? A General Equilibrium Analysis for Vietnam," World Development, Elsevier, vol. 51(C), pages 119-131.
  5. Alberto Bagnai & Arsène Rieber & Anh Dao Tran, 2013. "Economic growth and balance-of-payments constraint in Vietnam," a/ Working Papers Series 1302, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
  6. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex.
  7. Henrik Barslund Fosse & Pascalis Raimondos-Møller, 2011. "Reducing Tariffs according to WTO Accession Rules: The Case of Vietnam," CESifo Working Paper Series 3628, CESifo Group Munich.

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