MPIA-10470 Poverty Impacts of Preferential and Multilateral Trade Liberalization on the Philippines: A Computable General Equilibrium Analysis

Abstract

The Philippines has been participating in preferential and multilateral trade liberalization since the 1990s. However, the poverty effects of these trading arrangements are not yet fully known. This paper, using a computable general equilibrium (CGE) model, finds that reducing both Most-Favored-Nation (MFN) tariff rate and ASEAN Free Trade Area’s Common Effective Preferential Tariff (CEPT) rate, combined with enhancing direct income taxes to offset the loss in tariff revenue, are instrumental in reducing poverty in the country. It also shows that the relatively poor and less-skilled household groups, like agricultural workers and industrial workers, as well as the poorest of the poor, gain from these trading arrangements because of its ability to substantially lower consumer prices. In this regard, this paper proposes that the Philippine government be more active and further promote preferential and multilateral trade liberalization in order to help eradicate poverty.


Members

Project leader: Angelo Taningco

Project researchers: Rachel Reyes


Journal publication

No journal publications.


Working Papers

Title Modified Size Comments Recommendations
Poverty Impacts of Preferential and Multilateral Trade Liberalization on the Philippines: A Computable General Equilibrium Analysis 2010-03-29 298.91KB 0 0

Policy Briefs

Title Modified Size Comments Recommendations
Poverty Impacts of Preferential and Multilateral Trade Liberalization on the Philippines 2010-02-10 25.81KB 0 0

Final report

Title Modified Size Comments Recommendations
2008-07-25 274 KB 0 1

Proposal

Title Modified Size Comments Recommendations
2005-11-09 152 KB 0 1

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