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Impact assessment of national and regional policies using the Philippine Regional General Equilibrium model

Author

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  • Roehlano Briones

    (Philippine Institute for Development Studies)

Abstract

For the Philippines, a quantitative analysis is more useful for policy if it incorporates regional differences in welfare and economic structure. However, owing to the absence of key regional data, existing computable general equilibrium (cge) models offer limited analysis of regional effects or national impacts of region-specific interventions. This study formulates a regional cge model that overcomes these limitations. The applications of the model showed the following: (1) completion of the tariff reform program in agriculture will contract some import-competing sectors in lagging regions, but will improve welfare across all regions; (2) productivity growth in agriculture can more than offset these contractionary effects; (3) investments in marketing infrastructure promise significant pay-offs, though with a trade-off between the size and spread of welfare gains across regions; and (4) combining trade reform with marketing infrastructure investments slightly mitigates some of the contractionary effects from the former.

Suggested Citation

  • Roehlano Briones, 2015. "Impact assessment of national and regional policies using the Philippine Regional General Equilibrium model," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 45-76, June.
    • Handle: RePEc:phs:prejrn:v:52:y:2015:i:1:p:45-76
    as

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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/916/818
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    computable general equilibrium; regional economics; agricultural development; marketing infrastructure; trade liberalization; welfare impact;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • M39 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Other
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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