Regional Economic Integration and Its Impacts on Growth, Poverty and Income Distribution: The Case of Vietnam

Tien Dung Nguyen and Mitsuo Ezaki
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Tien Dung Nguyen: National Advanced Training Institute, Hanoi, Vietnam
Mitsuo Ezaki: Graduate School of International Development, Nagoya University, Nagoya, Japan

Chapter 17 in Computable General Equilibrium Approaches in Urban and Regional Policy Studies, 2006, pp 381-409 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractTrade liberalization and regional economic integration have recently accelerated in East Asia, where several free trade areas have been established or are under negotiation. After acquiring ASEAN membership in 1995, Vietnam has signed a bilateral trade package with the United States and participated in the China–ASEAN free trade area. This paper attempts to analyze impacts on Vietnam of ongoing regional economic integration, focussing on growth, poverty reductions and income distribution. For this purpose, we have constructed a global linked Computable General Equilibrium (CGE) model and made use of GTAP database version 6.0 andVietnam's living standards surveys. The simulation analysis shows that regional economic integration generally has positive impacts; and it both enhances welfare and improves income distribution for Vietnam. Household income and consumption increase, and poor and rural household groups benefit more than urban high income groups.

Keywords: Computable General Equilibrium (CGE) Model; Social Accounting Matrix (SAM); Urban and Regional Policies (or Urban and Regional Policy Evaluation); Each Industry's Market Clearance; Structural and Long-Term Policy Impacts (search for similar items in EconPapers)
JEL-codes: E5 E6 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (6)

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