Trade Reform and Poverty in the Philippines: A Computable General Equilibrium Microsimulation Analysis

Cororaton, Caesar B.; Cockburn, John

doi:10.2139/ssrn.721623

Cited by 13 publications

(11 citation statements)

References 8 publications

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“…The result showed that the first scenario causes the decreasing of poverty and the second scenario causes a worse condition for the poor people. Corryton and Cockburn (2005) in Philippine used a CGE model with 12 production sectors to investigate the effect of a reduction in tariffs on the poverty .Their model had 12 production sector, including 4 agricultural sub sectors, 5 industrial sub sectors and 3 services' sectors. In order to investigate the poverty resulting from the change in household income and consumptive price of consumer because of reduction of tariffs, the FGT index was used.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Macroeconomic Policies on Poverty in Iran

Azizi¹,

Yazdani²,

Aref³

et al. 2011

IJEF

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The objective of this study is to analysis the effectiveness of government intervention on poverty groups using a general equilibrium model. The social accounting matrix of year 2002 was used to estimate the GE model. The results indicate that absolute poverty line for the urban and rural regions are 3.7 and 2.4 million Rials respectively. Also the result shows that the majority of Iranian households are living under the poverty line. Thus, it is expected that the average propensity to consume among the households is high but on the other hand the average propensity to save is low.Keywords: Iran, intervention, Poverty line, household, general equilibrium 1. Introduction One of the main objectives of the government economic development programs in each country is to improve the economics conditions of people and reduce the poverty of the society. A structural change is required to be applied to reduce the poverty situation of the society. This could be done by an economic and social solution of poverty decreasing policy. Some economists believe that poverty is as a result of some economic -social factors. So it is necessary to try to find the main elements of poverty. A short term solution is a direct or indirect payment to the consumers. Subsidy on basic goods can be considered as a short -term support policy. But the long term aim is that the government has to protect the poverty groups by providing a necessary revenue acquisition condition. The creation of economic chances for poor people in order to combat with poverty is another long term solution. But the current government intervention policy doesn't provide any desirable chances for the poverty groups. In this study an attempt was made to use a general equilibrium model to analyze the effectiveness of government intervention policy regarding to the poverty issues. Literature ReviewMost of the previous studies have worked on only one of the components of government expenditure as a factor affecting on the poverty. Cane (2000) in Indonesia investigated the expenses of the road construction on the poverty. In this study they tried to separate the different states with suitable and unsuitable road. The results showed that one percent increase in the investment causes a 0.3 percent decrease in poverty in a 5 years period. Balsa Cane and Purina's study (2002) in Philippines showed that one percent increase in accessing to the road with instructive facilities decreases the income of poor people by 0.32 percent. Van D wall's study (1998) in Vietnam showed that the expanding of the irrigation facilities to the poor households who had small land increases the poor households' income more than the rich households. Fane and Junk findings (2002) showed that a 10 percent increase in investment on irrigation projects causes a 1.13 percent decreases in poverty index. Fane (2003) in his study showed that among the different components of government expenditure in rural sector, investment in research and extension, irrigation, rural instruction and infrastructu...

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Section: Literature Reviewmentioning

confidence: 99%

The Effect of Macroeconomic Policies on Poverty in Iran

Azizi¹,

Yazdani²,

Aref³

et al. 2011

IJEF

View full text Add to dashboard Cite

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“…The ‘top‐down’ approach used in this paper is an alternative to integrated models (see Cororaton & Cockburn, 2005). It relies on using a CGE and an MS model in a sequential way: first, the CGE model is run, followed by a second step in which the changes in some selected variables are passed on to the MS model (see Robilliard et al ., 2001).…”

Section: Model and Datamentioning

confidence: 99%

“…The 'top-down' approach used in this paper is an alternative to integrated models (see Cororaton & Cockburn, 2005). It relies on using a CGE and an MS model in a sequential way: first, the CGE 8 The MS model restores some geographical heterogeneity by taking into consideration the effects of an individual's location on the degree of sectoral mobility.…”

Section: (Iv) Linking the Two Modelsmentioning

confidence: 99%

“…2 2 This is similar to what has been done in some more complex integrated models. For instance, see the CGE–MS model by Cororaton & Cockburn (2005). …”

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confidence: 99%

“…This is similar to what has been done in some more complex integrated models. For instance, see the CGE-MS model byCororaton & Cockburn (2005).3 By transfers we mean transfers from other households, transfers form abroad and transfers from the government.4 A comprehensive description is provided inHérault (2006).…”

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Trade Liberalisation, Poverty and Inequality in South Africa: A Computable General Equilibrium‐Microsimulation Analysis*

Herault

2007

Economic Record

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This paper studies the effects of trade liberalisation on poverty and income inequality in South Africa. The main issue of interest is the effect of international trade on households (especially their income). The approach presented in this paper relies on combining a macro‐orientated computable general equilibrium model with a microsimulation model. The main concern regarding poor households is whether the decrease in nominal earnings for formal low‐skilled and skilled workers is offset by the upward trend in formal employment levels. The analysis indicates that such a trade‐off occurs, implying a decrease in poverty due to trade liberalisation.

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Building and Linking a Microsimulation Model to a Cge Model for South Africa

Herault¹

2006

South African J Economics

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This paper examines the microeconomic effects of macroeconomic policies or shocks in South Africa. In particular, the paper considers the effects of macroeconomic policies on poverty and inequality by building and linking a microsimulation (MS) model to a Computable General Equilibrium (CGE) model. In the South African context, where poverty and inequality are at high levels, this novel approach enables us to identify the winners and losers of any policy change, so that the impact on poverty and inequality can be assessed in detail. Copyright (c) 2006 The Author. Journal compilation (c) 2006 Economic Society of South Africa.

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Trade Reform and Poverty in the Philippines: A Computable General Equilibrium Microsimulation Analysis

Cited by 13 publications

References 8 publications

The Effect of Macroeconomic Policies on Poverty in Iran

The Effect of Macroeconomic Policies on Poverty in Iran

Trade Liberalisation, Poverty and Inequality in South Africa: A Computable General Equilibrium‐Microsimulation Analysis*

Building and Linking a Microsimulation Model to a Cge Model for South Africa

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