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Impacts of the Free Trade Area of the Pacific (FTAAP) on Production, Consumption, and Trade of the Philippines

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  • Rodriguez, U-Primo E.
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    Abstract

    This paper examines the economy-wide impacts of a Free Trade Area of the Asia Pacific (FTAAP) on the Philippine economy. In particular, it uses an applied general equilibrium model to determine the effects of alternative scenarios on aggregate and sectoral outputs, consumption, and international trade. The paper also compares the FTAAP to reforms which are confined to the ASEAN plus 3 and to a broader set of tariff changes that covers all the trading partners of the Philippines. The findings of the paper are as follows. First, the FTAAP is likely to benefit the Philippines in the form of higher aggregate output and employment. However, such gains are not projected for all industries as the simulation results indicate declines in the outputs of activities related to rice and corn. Second, the benefits from the FTAAP are likely to come more from the removal of tariffs on nonagriculture products. Finally, the aggregate gains from the FTAAP are larger than an arrangement which is limited to ASEAN plus 3 countries. However, the differences in the impacts do not appear to be very large.

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    File URL: http://serp-p.pids.gov.ph/serp-p/download.php?d=4372&s=3
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    Bibliographic Info

    Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2008-20.

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    Length: 35
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:phd:dpaper:dp_2008-20

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    Related research

    Keywords: international trade; Philippines; free trade area; applied general equilibrium models; Asia Pacific Economic Cooperation;

    This paper has been announced in the following NEP Reports:

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    1. Lewis, Jeffrey D. & Robinson, Sherman & Zhi Wang, 1995. "Beyond the Uruguay Round : the implications of an Asian free trade area," Policy Research Working Paper Series 1467, The World Bank.
    2. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, October.
    3. Warwick J. McKibbin, 1996. "Quantifying APEC Trade Liberalization: A Dynamic Analysis," Departmental Working Papers 1996-01, The Australian National University, Arndt-Corden Department of Economics.
    4. U-Primo E. Rodriguez & Liborio S. Cabanilla, 2006. "The Impact of a Philippine-US FTA : The Case of Philippine Agriculture," Development Economics Working Papers 22693, East Asian Bureau of Economic Research.
    5. Cabanilla, Liborio S. & Rodriguez, U-Primo E., 2006. "The Impact of a Philippine-US FTA: The Case of Philippine Agriculture," Discussion Papers DP 2006-06, Philippine Institute for Development Studies.
    6. Caesar B. Cororaton & John Cockburn & Erwin Corong, 2005. "Doha Scenarios, Trade Reforms, and Poverty inthe Philippines: a CGE Analysis," Working Papers MPIA 2005-03, PEP-MPIA.
    7. Cororaton, Caesar B., 1994. "Structural Adjustment Policy Experiments: The Use of Philippine CGE Models," Discussion Papers DP 1994-03, Philippine Institute for Development Studies.
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