Modelling Transition And International Opening In Asia: The Case Of Vietnam With A Comparison With China And The "Asian Tigers"
This paper describes the multisectoral macroeconomic model of a small developing economy in transition, in order to highlight linkages between agriculture and the rest of the economy, and consequences of external opening up. Agriculture is a supply sector, sticky in the short range with market clearing by price adjustment. The non agricultural sector is demand-led, with imperfect competition (and hence sticky prices and indexed nominal wages). According to this dual theoretical pattern, labor market is segmented with an unlimited supply in the rural area. This part of labor force is employed in the agricultural sector and in the rural non agricultural one. Urban workers are employed in the non agricultural sector but may face unemployment. The wage gap between urban and ruralareas induces migration, according to a Harris Todaro mechanism. This framework is applied to the Vietnam case. A calibrated quantitative model performs a base line simulation from 1993 to 2010, following approximately the path designed by the Vietnamese government. Finally, this model is used to sketch various scenarios, among which traditional macroeconomic packages, structural reforms, and external shocks.
|Date of creation:||2000|
|Date of revision:|
|Publication status:||Published in Comparative Economic Studies, Palgrave Macmillan, 2000, 42, pp.93-130. <10.1057/ces.2000.25>|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00372748|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cardoso, Eliana A., 1981. "Food supply and inflation," Journal of Development Economics, Elsevier, vol. 8(3), pages 269-284, June.
- Torsten Sloek & Sanja Kalra, 1999. "Inflation and Growth in Transition; Are the Asian Economies Different?," IMF Working Papers 99/118, International Monetary Fund.
- N. F. R. Crafts, 1998.
"East Asian Growth Before and After the Crisis,"
IMF Working Papers
98/137, International Monetary Fund.
- Rattso, Jorn, 1989. "Macrodynamic adjustment mechanisms in a dual semi-industrialized economy," Journal of Development Economics, Elsevier, vol. 30(1), pages 47-69, January.
When requesting a correction, please mention this item's handle: RePEc:hal:cesptp:halshs-00372748. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.