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

  • U-Primo E. Rodriguez

    (PIDS)

Registered author(s):

    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://www.eaber.org/node/22694
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    Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22694.

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    Date of creation: Jan 2008
    Date of revision:
    Handle: RePEc:eab:develo:22694
    Contact details of provider: Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
    Web page: http://www.eaber.org

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    1. Warwick. J. McKibbin, . "Quantifying APEC Trade Liberalization: A Dynamic Analysis," Discussion Papers 122, Brookings Institution International Economics.
    2. Cororaton, Caesar B., 2003. "Analysis of Trade Reforms, Income Inequality and Poverty Using Microsimulation Approach: The Case of the Philippines," Discussion Papers DP 2003-09, Philippine Institute for Development Studies.
    3. repec:cup:cbooks:9780521266550 is not listed on IDEAS
    4. 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.
    5. Cororaton, Caesar B. & Cockburn, John & Corong, Erwin, 2005. "Doha scenarios, trade reforms, and poverty in the Philippines," MTID discussion papers 86, International Food Policy Research Institute (IFPRI).
    6. Cororaton, Caesar B., 1994. "Structural Adjustment Policy Experiments: The Use of Philippine CGE Models," Discussion Papers DP 1994-03, Philippine Institute for Development Studies.
    7. repec:phd:dpaper:pn_2005-05 is not listed on IDEAS
    8. 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.
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