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Trade and Development: Lessons from Vietnam's Past Trade Agreements

Author

Listed:
  • Abbott, Philip
  • Bentzen, Jeanet
  • Tarp, Finn

Abstract

Summary History, not predictions of CGE models or cross-country growth studies, shows a strong relationship between trade and development. Vietnam's experience with bilateral trade agreements, comparing actual outcomes with predictions from existing models, demonstrates this and the limitations of research methodologies. Forecasts for Vietnam greatly underestimated the impact of past agreements because tariff reform was not the main factor driving adjustments. Addressing market imperfections through institutional reform was central to bringing output and trade expansion. Key questions for future research are whether policy reform will result in new institutional changes, and how resulting incentives determine the evolution of investment by sector.

Suggested Citation

  • Abbott, Philip & Bentzen, Jeanet & Tarp, Finn, 2009. "Trade and Development: Lessons from Vietnam's Past Trade Agreements," World Development, Elsevier, vol. 37(2), pages 341-353, February.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:2:p:341-353
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    References listed on IDEAS

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    Cited by:

    1. Dang Thi Thu Hoai & Finn Tarp & Dirk van Seventer & Ho Cong Hoa., 2016. "Growth and structural transformation in Viet Nam during the 2000s," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).
    2. Rutten, Martine & van Dijk, Michiel & van Rooij, Wilbert & Hilderink, Henk, 2014. "Land Use Dynamics, Climate Change, and Food Security in Vietnam: A Global-to-local Modeling Approach," World Development, Elsevier, vol. 59(C), pages 29-46.
    3. Henrik Barslund Fosse & Pascalis Raimondos‐Møller, 2012. "Reducing Tariffs According to WTO Accession Rules: The Case of Vietnam," Review of Development Economics, Wiley Blackwell, vol. 16(2), pages 331-341, May.
    4. Carol Newman & John Rand & Finn Tarp, 2016. "Imports, supply chains, and firm productivity," Working Paper Series UNU-WIDER Working Paper w, World Institute for Development Economic Research (UNU-WIDER).
    5. Thurlow James & Tarp Finn & McCoy Simon & Hai Nguyen Manh & Breisinger Clemens & Arndt Channing, 2011. "The Impact of the Global Commodity and Financial Crises on Poverty in Vietnam," Journal of Globalization and Development, De Gruyter, vol. 2(1), pages 1-31, August.
    6. Le, Minh Son, 2014. "Trade openness and household welfare within a country: A microeconomic analysis of Vietnamese households," Journal of Asian Economics, Elsevier, vol. 33(C), pages 56-70.
    7. A. Bagnai & A. Rieber & T.A.D. Tran, 2013. "Economic growth and balance of payments constraint in Vietnam," Working Papers 13, Development and Policies Research Center (DEPOCEN), Vietnam.
    8. Marco Alderighi, 2013. "Air accessibility and the export of Italian manufacture in Europe: Evidence at regional level," ERSA conference papers ersa13p1304, European Regional Science Association.
    9. Carol Newman & John Rand & Finn Tarp, 2016. "Imports, supply chains, and firm productivity," WIDER Working Paper Series 090, World Institute for Development Economic Research (UNU-WIDER).
    10. Miriam Frey & Zoryana Olekseyuk, 2014. "A general equilibrium evaluation of the fiscal costs of trade liberalization in Ukraine," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 505-540, August.
    11. Houssein Boumellassa & Hugo Valin, 2009. "Vietnam's Accession to the WTO: Expost Evaluation in a Dynamic Perspective," Economie Internationale, CEPII research center, issue 118, pages 13-42.
    12. Mustapha K. Nabli, 2011. "The Great Recession and Developing Countries : Economic Impact and Growth Prospects," World Bank Publications, The World Bank, number 2539.
    13. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex.
    14. repec:wsi:jicepx:v:03:y:2012:i:01:n:s1793993312400066 is not listed on IDEAS
    15. Coxhead, Ian & Wattanakuljarus, Anan & Nguyen, Chan V., 2013. "Are Carbon Taxes Good for the Poor? A General Equilibrium Analysis for Vietnam," World Development, Elsevier, vol. 51(C), pages 119-131.
    16. Emiliano Magrini & Pierluigi Montalbano & L. Alan Winters, 2017. "Vulnerability from trade in Vietnam," Working Paper Series 2017, Department of Economics, University of Sussex.
    17. Beata Udvari, 2016. "The Aid for Trade initiative and the export performance of the Iberian EU-countries," IWE Working Papers 225, Institute for World Economics - Centre for Economic and Regional Studies- Hungarian Academy of Sciences.
    18. Philip Abbott & Finn Tarp, 2012. "Globalization Crises, Trade And Development In Vietnam," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-23.
    19. Coxhead, Ian & Chan, Nguyen Van, 2011. "Vietnam's New Environmental Tax Law: What Will It Cost? Who Will Pay?," Staff Paper Series 561, University of Wisconsin, Agricultural and Applied Economics.
    20. repec:dau:papers:123456789/11406 is not listed on IDEAS

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