Agriculture-sector Policies and Poverty in the Philippines: a Computable General-Equilibrium (CGE) Analysis
AbstractThe Philippines has undertaken substantial trade-policy reforms since the 1980s. However, the poverty impact is not very clear and has been the subject of intense debate, most crucial of which is the likely poverty effects of liberalizing the highly protected agricultural sector. A CGE micro-simulation model is employed to estimate and explain these impacts. Tariff reduction induces consumers to substitute cheaper imported agricultural products for domestic goods, thereby resulting in a contraction in agricultural output. In contrast, the prevalence of cheap, imported inputs reduces the domestic cost of production, benefiting the outward-oriented and import-dependent industrial sector as their output and export increases. The national poverty headcount decreases marginally as lower consumer prices outweigh the income reduction experienced by the majority of households. However, both the poverty gap and severity of poverty worsens, implying that the poorest of the poor become even poorer.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by PEP-MPIA in its series Working Papers MPIA with number 2006-09.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: Pavillon J.A. De Seve, Québec, Québec, G1V 0A6
Phone: 1-418-656-2131, ext. 2697
Web page: http://www.pep-net.org
More information through EDIRC
Agriculture; International trade; Poverty; Computable general equilibrium; Micro-simulation; Philippines;
Find related papers by JEL classification:
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-06-10 (Agricultural Economics)
- NEP-ALL-2006-06-10 (All new papers)
- NEP-CMP-2006-06-10 (Computational Economics)
- NEP-DEV-2006-06-10 (Development)
- NEP-INT-2006-06-10 (International Trade)
- NEP-MAC-2006-06-10 (Macroeconomics)
- NEP-SEA-2006-06-10 (South East Asia)
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.:
- L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
- Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999.
"Poverty Analysis Within a General Equilibrium Framework,"
9909, Laval - Recherche en Politique Economique.
- Decaluwe, B. & Patry, A. & Savard, L. & Thorbecke, E., 1999. "Poverty Analysis Within a General Equilibrium Framework," Cahiers de recherche 9909, Université Laval - Département d'économique.
- Caesar B. Cororaton & John Cockburn, 2005. "Trade Reform and Poverty in the Philippines: a Computable General Equilibrium Microsimulation Analysis," Cahiers de recherche 0513, CIRPEE.
- Thomas Hertel & Jeffrey Reimer, 2005.
"Predicting the poverty impacts of trade reform,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 14(4), pages 377-405.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007.
"How confident can we be of CGE-based assessments of Free Trade Agreements?,"
Elsevier, vol. 24(4), pages 611-635, July.
- Thomas Hertel & David Hummels & Maros Ivanic & Roman Keeney, 2004. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," NBER Working Papers 10477, National Bureau of Economic Research, Inc.
- Hertel, Thomas & David Hummels & Maros Ivanic & Roman Keeney, 2003. "How Confident Can We Be in CGE-Based Assessments of Free Trade Agreements?," GTAP Working Papers 1324, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Coxhead, Ian A. & Warr, Peter G., 1995.
"Does Technical Progress In Agriculture Alleviate Poverty? A Philippine Case Study,"
Australian Journal of Agricultural Economics,
Australian Agricultural and Resource Economics Society, vol. 39(01), April.
- Ian A. Coxhead & Peter G. Warr, 1995. "Does Technical Progress In Agriculture Alleviate Poverty? A Philippine Case Study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 39(1), pages 25-54, 04.
- de Janvry, Alain & Sadoulet, Elisabeth & Fargeix, Andre, 1991. "Politically feasible and equitable adjustment: Some alternatives for ecuador," World Development, Elsevier, vol. 19(11), pages 1577-1594, November.
- John Cockburn, 2002.
"Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis,"
Economics Series Working Papers
WPS/2002-11, University of Oxford, Department of Economics.
- John Cockburn, 2002. "Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis," CSAE Working Paper Series 2002-11, Centre for the Study of African Economies, University of Oxford.
- John Cockburn, 2004. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Development and Comp Systems 0409012, EconWPA.
- Austria, Myrna S., 2002. "The Philippines in the Global Trading Environment: Looking Back and the Road Ahead," Discussion Papers DP 2002-15, Philippine Institute for Development Studies.
- Rafaelita M. Aldaba, 2005.
"Policy Reversals, Lobby Groups and Economic Distortions,"
Trade Working Papers
22312, East Asian Bureau of Economic Research.
- Aldaba, Rafaelita M., 2005. "Policy Reversals, Lobby Groups and Economic Distortions," Discussion Papers DP 2005-04, Philippine Institute for Development Studies.
- Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines : a computable general equilibrium analysis," Policy Research Working Paper Series 3738, The World Bank.
- Kebede, Sindu & Fekadu, Belay & Aredo, Dejene, 2011. "Trade Liberalization and Poverty: A Macro-Micro Analysis in Ethiopia," Proceedings of the German Development Economics Conference, Berlin 2011 44, Verein für Socialpolitik, Research Committee Development Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron).
If references are entirely missing, you can add them using this form.