Trade Liberalization and Spatial Inequality: A Methodological Innovation in Vietnamese Perspective

Henning Jensen and Finn Tarp

No RP2004-35, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In this paper we calibrate two static computable general equilibrium (CGE) models with respectively 16 and 5,999 representative households. Aggregated and disaggregated household categories are consistently embedded in a 2000 social accounting matrix for Vietnam, mapping on a one-to-one basis to each other. Distinct differences in poverty assessments emerge when the impact of trade liberalization is analyzed in the two models. This highlights the importance of modeling micro household behavior and related income and expenditure distributions endogenously within a static CGE model framework.

Keywords: Commercial policy; Economic equilibrium; Poverty; Trade regulation (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (26)

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Related works:
Journal Article: Trade Liberalization and Spatial Inequality: a Methodological Innovation in a Vietnamese Perspective (2005)
Working Paper: Trade Liberalisation and Spatial Inequality: Methodological Innovations in Vietnamese Perspective (2003)
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