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Regional Economic Integration and Its Impacts on Growth, Poverty and Income Distribution: The Case of Vietnam

In: Computable General Equilibrium Approaches In Urban And Regional Policy Studies

Author

Listed:
  • TIEN DUNG NGUYEN

    (National Advanced Training Institute, Hanoi, Vietnam)

  • MITSUO EZAKI

    (Graduate School of International Development, Nagoya University, Nagoya, Japan)

Abstract

Trade liberalization and regional economic integration have recently accelerated in East Asia, where several free trade areas have been established or are under negotiation. After acquiring ASEAN membership in 1995, Vietnam has signed a bilateral trade package with the United States and participated in the China–ASEAN free trade area. This paper attempts to analyze impacts on Vietnam of ongoing regional economic integration, focussing on growth, poverty reductions and income distribution. For this purpose, we have constructed a global linked Computable General Equilibrium (CGE) model and made use of GTAP database version 6.0 andVietnam's living standards surveys. The simulation analysis shows that regional economic integration generally has positive impacts; and it both enhances welfare and improves income distribution for Vietnam. Household income and consumption increase, and poor and rural household groups benefit more than urban high income groups.

Suggested Citation

  • Tien Dung Nguyen & Mitsuo Ezaki, 2006. "Regional Economic Integration and Its Impacts on Growth, Poverty and Income Distribution: The Case of Vietnam," World Scientific Book Chapters, in: Masayuki Doi (ed.), Computable General Equilibrium Approaches In Urban And Regional Policy Studies, chapter 17, pages 381-409, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812707116_0017
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    Citations

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    Cited by:

    1. Long Hoang Thanh & Linh Ta Nhat & Hao Nguyen Dang & Thi Minh Hop Ho & Philippe Lebailly, 2018. "One Village One Product (OVOP)—A Rural Development Strategy and the Early Adaption in Vietnam, the Case of Quang Ninh Province," Sustainability, MDPI, vol. 10(12), pages 1-17, November.
    2. Djoni Hartono & Dominicus Savio Priyarsono & Tien Dung Nguyen & Mitsuo Ezaki, 2007. "Regional Economic Integration And Its Impacts On Growth, Poverty, And Income Distribution: The Case Of Indonesia," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 19(2), pages 138-153, July.
    3. Phouphet Kyophilavong & Xaignasack Lassachack & Thanouxay Volavong, 2016. "Do cash transfers help the poor during trade liberalization? Evidence from Laos," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 19(4), pages 355-371, December.
    4. Andrista, Safira & Widodo, Tri, 2017. "Welfare Impact of ASEAN Economic Integration: “ASEAN Way” Versus Theory," MPRA Paper 80880, University Library of Munich, Germany.
    5. Wannaphong Durongkaveroj & Taehyun Ryu, 2019. "Relative effects of trade liberalization on poverty: Evidence from Thailand," Progress in Development Studies, , vol. 19(4), pages 264-283, October.
    6. Ariyasajjakorn, Danupon & Gander, James P. & Ratanakomut, Somchai & Reynolds, Stephen E., 2009. "ASEAN FTA, distribution of income, and globalization," Journal of Asian Economics, Elsevier, vol. 20(3), pages 327-335, May.

    More about this item

    Keywords

    Computable General Equilibrium (CGE) Model; Social Accounting Matrix (SAM); Urban and Regional Policies (or Urban and Regional Policy Evaluation); Each Industry's Market Clearance; Structural and Long-Term Policy Impacts;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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