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GTAP Resource #1431

"Trade Reform and Poverty in the Philippines: A Computable General Equilibrium Microsimulation Analysis "
by Cororaton, Caesar and John Cockburn

The paper employs an integrated CGE-microsimulation approach to analyze the poverty effects of tariff reduction. The results indicate that tariff reduction between 1994 and 2000 is generally poverty-reducing. However, the reduction is much higher in the National Capital Region (NCR), where the incidence of poverty is already lowest, than in other areas, where poverty is much more widespread. Poverty gains are achieved primarily through a reduction in consumer prices, although household incomes also increase. Tariff cuts also lower the cost of local production and bring about a real exchange rate depreciation. Since the non-food manufacturing sector is the most export-oriented sector in the Philippines, it emerges as the biggest beneficiary of trade liberalization. On the other hand, the agricultural sector contracts. As the poor derive most of their income from the agricultural sector, income inequality worsens as a result of trade liberalization.

Resource Details (Export Citation) GTAP Keywords
Category: 2004 Conference Paper
Status: Published
By/In: Presented at the 7th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2004
Created: Cororaton, C. (4/20/2004)
Updated: Cockburn, J. (5/3/2004)
Visits: 2,178
No keywords have been specified.

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