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GTAP Resource #1725

"Do markets care about ethnic minorities? Evidence from a CGE model for north-western Vietnam"
by Breisinger, Clemens


Abstract
This paper uses a computable general equilibrium model (CGE) for a north-western mountainous province in Vietnam to explore the impacts of market opening on disadvantaged regions and groups. Market opening in the region is induced by improved physical infrastructure. The study hypothesises that this improvement functions in the same way as lowering tariffs and leads to the same kind of economic benefits. The central questions are whether and to which extent the local economy and different household groups are affected by market opening and which role the labour market plays in this process. Innovative features of the study include the local focus of the social accounting matrix (SAM) and the household disaggregation according to ethnic group. Results from the model show that a reduction of transaction costs for exported commodities has substantially larger positive impacts on rural ethnic households than do lower prices for imported goods. Furthermore, the study underlines the important role of labour markets in the determination of the economy-wide impacts of market opening. Sector-specificity of agricultural labour strongly reduces positive impacts of market opening and hinders economic development.


Resource Details (Export Citation) GTAP Keywords
Category: 2005 Conference Paper
Status: Published
By/In: Presented at the 8th Annual Conference on Global Economic Analysis, Lübeck, Germany
Date: 2005
Version:
Created: Breisinger, C. (4/29/2005)
Updated: Breisinger, C. (6/3/2005)
Visits: 1,658
No keywords have been specified.


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