IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331444.html
   My bibliography  Save this paper

Vietnam’s Trade Policy Dilemmas

Author

Listed:
  • Vanzetti, David
  • Huong, Pham Lan

Abstract

Vietnam faces alternative options in opening its economy to trade. It is about to join the World Trade Organisation, as a member of the ASEAN Free Trade Area it is contemplating extending the regional trade area to include China, Korea and Japan, and it has recently concluded a bilateral agreement with the United States. Opening up to trade is a two edged sword, with the beneficial effects of improved market access and resource allocation liable to be partially or totally offset by adverse terms of trade effects and significant, albeit one-off, cost of structrural adjustment. Simulations of unilateral, bilateral, regional and multilateral liberalisation using a general equilibrium model, GTAP, indicate that significant welfare benefits could be obtained from unilateral liberalisation, but regional or multilateral liberalisation is required to improve exports. There are only limited gains in the agricultural and resources sectors, as these major exports face low tariff barriers. However, the US market for Vietnam’s textiles and apparel is crucially important.

Suggested Citation

  • Vanzetti, David & Huong, Pham Lan, 2006. "Vietnam’s Trade Policy Dilemmas," Conference papers 331444, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331444
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331444/files/2159.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Francois Bourguignon & Luiz A. Pereira da Silva, 2003. "The Impact of Economic Policies on Poverty and Income Distribution : Evaluation Techniques and Tools," World Bank Publications - Books, The World Bank Group, number 15090, December.
    2. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    3. Jesper Jensen & Thomas Rutherford & David Tarr, 2014. "The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 6, pages 125-149, World Scientific Publishing Co. Pte. Ltd..
    4. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
    5. Robert Feenstra & Hiau Looi Kee, 2004. "On the Measurement of Product Variety in Trade," American Economic Review, American Economic Association, vol. 94(2), pages 145-149, May.
    6. Rutherford, Thomas F, 1999. "Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax," Computational Economics, Springer;Society for Computational Economics, vol. 14(1-2), pages 1-46, October.
    7. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
    8. Thomas F. Rutherford & David G. Tarr, 2017. "Trade liberalization, product variety and growth in a small open economy: a quantitative assessment," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 17, pages 389-414, World Scientific Publishing Co. Pte. Ltd..
    9. Jesper Jensen & David Tarr, 2014. "Trade, Exchange Rate, and Energy Pricing Reform in Iran: Potentially Large Efficiency Effects and Gains to the Poor," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 13, pages 307-326, World Scientific Publishing Co. Pte. Ltd..
    10. Feenstra, Robert C. & Madani, Dorsati & Yang, Tzu-Han & Liang, Chi-Yuan, 1999. "Testing endogenous growth in South Korea and Taiwan," Journal of Development Economics, Elsevier, vol. 60(2), pages 317-341, December.
    11. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Economic implications for Turkey of a Customs Union with the European Union," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 16, pages 395-404, World Scientific Publishing Co. Pte. Ltd..
    12. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2017. "Quantifying The Uruguay Round," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 16, pages 363-388, World Scientific Publishing Co. Pte. Ltd..
    13. David Hummels & Peter J. Klenow, 2002. "The Variety and Quality of a Nation's Trade," NBER Working Papers 8712, National Bureau of Economic Research, Inc.
    14. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abbott, Philip & Bentzen, Jeanet & Tarp, Finn, 2006. "Vietnam’s Accession to the WTO: Lessons from Past Trade Agreements," MPRA Paper 61679, University Library of Munich, Germany.
    2. Keshab Bhattarai & Dung Thi Kim Nguyen & Chan Van Nguyen, 2019. "Impacts of Direct and Indirect Tax Reforms in Vietnam: A CGE Analysis," Economies, MDPI, vol. 7(2), pages 1-36, May.
    3. To, Minh Thu & Lee, Hiro, 2014. "Assessing the impacts of deeper trade reform in Vietnam in a general equilibrium framework," MPRA Paper 82271, University Library of Munich, Germany.
    4. Muhammad Shahzad Iqbal, Sofia Anwar, Kakali Mukhopadhay, Muhammad Aamir Khan, 2017. "GSP Plus Status and Income Distribution: A CGE Model for Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 4(1), pages 27-53, March.
    5. Kikuchi, Tomoo & Yanagida, Kensuke & Vo, Huong, 2018. "The effects of Mega-Regional Trade Agreements on Vietnam," Journal of Asian Economics, Elsevier, vol. 55(C), pages 4-19.
    6. 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.
    7. Abbott, Philip & Bentzen, Jeanet & Huong, Thi Lan & Tarp, Finn, 2007. "A Critical Review of Studies on the Social and Economic Impacts of Vietnam’s International Economic Integration," MPRA Paper 29789, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas F. Rutherford & David G. Tarr, 2014. "Poverty effects of Russia's WTO accession: Modeling “real” households with endogenous productivity effects," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 12, pages 287-306, World Scientific Publishing Co. Pte. Ltd..
    2. Tarr, David G., 2013. "Putting Services and Foreign Direct Investment with Endogenous Productivity Effects in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 303-377, Elsevier.
    3. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "The impact on Russia of WTO accession and the Doha agenda : the importance of liberalization of barriers against foreign direct investment in services for growth and poverty reduction," Policy Research Working Paper Series 3725, The World Bank.
    4. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "Poverty effects of Russia's WTO accession : modeling"real"households and endogenous productivity effects," Policy Research Working Paper Series 3473, The World Bank.
    5. Rutherford, Thomas & Tarr, David, 2008. "Regional household and poverty effects of Russia's accession to the world trade organization," Policy Research Working Paper Series 4570, The World Bank.
    6. World Bank, 2016. "Assessing the Impact of WTO Accession on Belarus," World Bank Publications - Reports 24698, The World Bank Group.
    7. Nag, Biswajit & Sikdar, Chandrima, 2011. "India-ASEAN FTA: Implication of Phased Liberalisation," Conference papers 332153, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Balistreri, Edward J. & Rutherford, Thomas F. & Tarr, David G., 2009. "Modeling services liberalization: The case of Kenya," Economic Modelling, Elsevier, vol. 26(3), pages 668-679, May.
    9. Thomas F. Rutherford & David G. Tarr, 2017. "Trade liberalization, product variety and growth in a small open economy: a quantitative assessment," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 17, pages 389-414, World Scientific Publishing Co. Pte. Ltd..
    10. Jesper Jensen & David Tarr, 2014. "Deep Trade Policy Options for Armenia: The Importance of Trade Facilitation, Services and Standards Liberalization," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 19, pages 453-508, World Scientific Publishing Co. Pte. Ltd..
    11. Rutherford, Thomas & Tarr, David, 2006. "Regional impacts of Russia's accession to the World Trade Organization," Policy Research Working Paper Series 4015, The World Bank.
    12. Yang, Yongzheng & Mlachila, Montfort, 2004. "The End of Textiles Quotas: A Case Study of the Impact on Bangladesh," Conference papers 331278, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Jesper Jensen & Thomas Rutherford & David Tarr, 2014. "The Impact of Liberalizing Barriers to Foreign Direct Investment in Services: The Case of Russian Accession to the World Trade Organization," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 6, pages 125-149, World Scientific Publishing Co. Pte. Ltd..
    14. Christoph Boehringer & Edward Balistreri & Thomas Rutherford, 2018. "Quantifying Disruptive Trade Policies," Working Papers V-415-18, University of Oldenburg, Department of Economics, revised Nov 2018.
    15. Mueller, Marc & Pérez Domínguez, Ignacio, 2008. "Compilation of Social Accounting Matrices with a Detailed Representation of the Agricultural Sector (AgroSAM)," Conference papers 331691, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. JESPER JENSEN & Thomas F. Rutherford & David G. Tarr, 2014. "Modeling Services Liberalization: The Case of Tanzania," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 9, pages 191-222, World Scientific Publishing Co. Pte. Ltd..
    17. Balistreri, Edward J. & Olekseyuk, Zoryana & Tarr, David G., 2016. "The Impact of WTO Accession and Complementary Structural Reforms on the Economy of Belarus: A Quantitative Evaluation," Conference papers 332696, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Balistreri, Edward J. & Tarr, David G., 2017. "Market Structure and the impact of RCEP in The Philippines: What are the Differences between Melitz, Krugman and Armington Models," Conference papers 332835, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Jensen, Jesper & Rutherford, Thomas & Tarr, David, 2005. "Telecommunications reform within Russia's accession to the World Trade Organization," Policy Research Working Paper Series 3501, The World Bank.
    20. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2017. "Rules Of Thumb For Evaluating Preferential Trading Arrangements: Evidence From Cge Assessments," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 7, pages 145-153, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Keywords

    International Relations/Trade; International Development;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:331444. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.