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Chapter 8 Exploring Poverty Impacts of ASEAN Trade Liberalization for Cambodia, Lao PDR, Thailand and Vietnam

In: New Developments in Computable General Equilibrium Analysis for Trade Policy

Author

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  • Anna Strutt
  • Thomas W. Hertel
  • Susan Stone

Abstract

This chapter uses a global trade model, supplemented with household survey data, to explore the potential impact of ASEAN trade liberalization on poverty in Cambodia, Lao PDR, Thailand, and Vietnam. Our tentative results suggest that ASEAN liberalization is likely to bring substantial gains to the region and lead to significant reductions in poverty. In a simulation of full removal of intra-ASEAN tariffs, we find 320,000 people are moved out of extreme poverty, with a further 1.4 million lifted above the $2 per day poverty line. Poverty reductions are particularly significant in the case of agricultural and rural diversified households and for Cambodia. Under broader ASEAN+3 and ASEAN+6 liberalizations, we find a similar pattern of poverty reduction and the overall reduction in poverty is much higher.

Suggested Citation

  • Anna Strutt & Thomas W. Hertel & Susan Stone, 2010. "Chapter 8 Exploring Poverty Impacts of ASEAN Trade Liberalization for Cambodia, Lao PDR, Thailand and Vietnam," Frontiers of Economics and Globalization, in: New Developments in Computable General Equilibrium Analysis for Trade Policy, pages 217-245, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:fegzzz:s1574-8715(2010)0000007011
    DOI: 10.1108/S1574-8715(2010)0000007011
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