U-Primo E. Rodriguez () (UP Los Baños, Philippines) Yolanda t. Garcia () (UP Los Baños, Philippines) Arnulfo G. Garcia () (SEARCA,Philippines) Reynaldo L. Tan () (UP Los Baños, Philippines)
Abstract
The paper examines the possibilities of using trade policy to address the adverse economic effects of an avian influenza outbreak in the Philippines. In particular, it employs a computable general equilibrium (CGE) model for analyzing the likely effects of two options; namely, a) a ban on imported poultry, and b) the removal of tariffs on non-poultry meat products. Using six model scenarios (i.e., production shocks, consumption shocks, ban on poultry imports, removal of tariff on non-poultry imports, and selected combinations of these shocks), the simulation results reveal that (a) the consumption and production shocks are expected to have a contractionary effect on real GDP; (b) the expected fall in the output of poultry products explains most of the decline in real GDP; (c) the production shock appears to have a larger impact since this explains most of the decline in real GDP as well as the increase in the general price level; (d) while the consumption shock tends to have a larger impact on the poultry products, the production shock dominates the aggregate responses because of its effects on other industries, and (e) avian influenza is likely to have far-reaching effects on the economy, way beyond the poultry sector. Based on these results, this paper supports the use of an import ban as a preventive measure against the occurrence of an avian influenza attack. This is based on the finding that the economic costs from such a measure appear to be lower than the costs associated with the disease. In contrast, the study finds that there is a weak case for removing tariffs on non-poultry meat products as a means to soften the harmful impacts of an avian influenza outbreak.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Volume (Year): 4 (2007) Issue (Month): 2 (December) Pages: 41-50 Download reference. The following formats are available: HTML,
plain text,
BibTeX,
RIS (EndNote),
ReDIF
Handle: RePEc:sag:seajad:v:4:y:2007:i:2:p:41-50
Note: ORDER INFORMATION. Mr. Randy A. Foronda, SEARCA, College, 4031 Los Baños, Laguna, Philippines. E-mail:raf@agri.searca.org Contact details of provider: Postal: College 4031, Laguna, Philippines Phone: (63-49) 536-2365 Fax: (63-49) 536-7097 Email: Web page: http://www.searca.org/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Bernadette P. Joven).