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Trade Policy Reforms and the Structure of Protection in Vietnam

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  • Prema-chandra Athukorala

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Abstract

This paper examines the current state of the trade policy regime in Vietnam against the backdrop of market-oriented policy reforms undertaken over the past one-and-a-half decades. The core of the paper is an in-depth analysis of the structure of protection, focussing on both incentives for import-competing production the bias in the incentive structure against export production compared to import-competing production. It is found that, despite notable reform efforts, the structure of protection in Vietnam is still out of line with that of the major trading nations in the region, in terms of the level and the inter-industry dispersion of nominal and effective protection rates. There is a clear ani-export bias in the incentive structure, even though the degree of the bias has considerably declined over the years. There is no evidence to justify the existing protection structure on grounds of infant industry protection or employment generation.

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File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2005/wp-econ-2005-06.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2005-06.

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Length: 45 pages
Date of creation: Apr 2005
Date of revision:
Handle: RePEc:pas:papers:2005-06

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  1. James Riedel, 1993. "Vietnam: On the Trail of the Tigers," The World Economy, Wiley Blackwell, vol. 16(4), pages 401-422, 07.
  2. Prema-chandra Athukorala, 2008. "Export Performance in the Reform Era:Has India Regained the Lost Ground?," ASARC Working Papers 2008-03, The Australian National University, Australia South Asia Research Centre.
  3. David Greenaway & Chris Milner, 2003. "Effective Protection, Policy Appraisal and Trade Policy Reform," The World Economy, Wiley Blackwell, vol. 26(4), pages 441-456, 04.
  4. Richard G. Harris & Peter E. Robertson & Melissa Wong, 2007. "Analyzing Economy Wide Effects of Trade Liberalisation on Vietnam using a Dynamic Computable General Equilibrium Model," Discussion Papers 2007-24, School of Economics, The University of New South Wales.
  5. Arvind Panagariya, 1994. "East Asia and the New Regionalism in World Trade," The World Economy, Wiley Blackwell, vol. 17(6), pages 817-839, November.
  6. Hakkala, Katariina & Kokko , Ari, 2007. "The State And The Private Sector In Vietnam," EIJS Working Paper Series 236, The European Institute of Japanese Studies.
  7. Hill, Hal, 2000. "Export Success Against the Odds: A Vietnamese Case Study," World Development, Elsevier, vol. 28(2), pages 283-300, February.
  8. Prema-chandra Athukorala & Hal Hill, 2010. "Asian trade: long-term patterns and key policy issues," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 24(2), pages 52-82, November.
  9. Auffret, Phillipe, 2003. "Trade reform in Vietnam : opportunities with emerging challenges," Policy Research Working Paper Series 3076, The World Bank.
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Citations

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Cited by:
  1. Phan, Diep & Coxhead, Ian, 2013. "Long-run costs of piecemeal reform: Wage inequality and returns to education in Vietnam," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1106-1122.
  2. Athukorala, Prema-chandra & Huong, Pham Lan & Thanh, Vo Tri, 2007. "Distortions to Agricultural Incentives in Vietnam," Agricultural Distortions Working Paper 48475, World Bank.
  3. Prema-chandra Athukorala, 2008. "Export Performance in the Reform Era:Has India Regained the Lost Ground?," ASARC Working Papers 2008-03, The Australian National University, Australia South Asia Research Centre.
  4. Prema-Chandra Athukorala, 2011. "Asian Trade Flows: Trends, Patterns and Projections," Departmental Working Papers 2011-05, The Australian National University, Arndt-Corden Department of Economics.
  5. Thoburn, John, 2009. "Vietnam as a Role Model for Development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Marks, Stephen V., 2011. "Lao economic policies and effective rates of protection," Journal of Asian Economics, Elsevier, vol. 22(2), pages 115-127, April.
  7. 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.
  8. Remco H. Oostendorp & Doan Hong Quang, 2011. "The Impact of Trade Liberalization on the Return to Education in Vietnam: Wage versus Employment Effect," Tinbergen Institute Discussion Papers 11-060/3, Tinbergen Institute, revised 04 Apr 2011.
  9. Vanzetti, David, 2006. "Open Wide: Vietnam’s Agricultural Trade Policy," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139916, Australian Agricultural and Resource Economics Society.
  10. Kokko, Ari & Sjöholm, Fredrik, 2004. "The Internationalization of Vietnamese SMEs," EIJS Working Paper Series 193, The European Institute of Japanese Studies, revised 14 Oct 2004.
  11. Jones, Nicola & Nguyen, Ngoc Anh & Nguyen, Thu Hang, 2007. "Trade liberalisation and intra-household poverty in Vietnam: a q2 social impact analysis," MPRA Paper 4206, University Library of Munich, Germany.
  12. Barbara Coello & Madior Fall & Akiko Suwa-Eisenmann, 2010. "Trade Liberalization And Poverty Dynamics in Vietnam 2002-2006," PSE - G-MOND WORKING PAPERS halshs-00966364, HAL.
  13. Mani, Muthukumara & Jha, Shreyasi, 2006. "Trade liberalization and the environment in Vietnam," Policy Research Working Paper Series 3879, The World Bank.
  14. Vo Tri Thanh & Nguyen Tu Anh, 2007. "Institutional Changes for Private Sector Development in Vietnam : Experience and Lessons," EABER Working Papers 21868, East Asian Bureau of Economic Research.
  15. Anwar, Sajid & Nguyen, Lan Phi, 2011. "Foreign direct investment and trade: The case of Vietnam," Research in International Business and Finance, Elsevier, vol. 25(1), pages 39-52, January.
  16. Barbara Coello & Madior Fall & Akiko Suwa-Eisenmann, 2010. "Trade liberalization and poverty dynamics in Vietnam 2002-2006," PSE Working Papers halshs-00564858, HAL.
  17. Brian McCaig & Nina Pavcnik, 2013. "Moving out of Agriculture: Structural Change in Vietnam," NBER Working Papers 19616, National Bureau of Economic Research, Inc.
  18. Pham, Hung T, 2006. "Rural Nonfarm Employment Under Trade Reform Evidence From Vietnam, 1993-2002," MPRA Paper 6476, University Library of Munich, Germany.

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