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Philippine-Japan Bilateral Agreements: Analysis of Possible Effects on Unemployment, Distribution and Poverty in the Philippines Using CGE-Microsimulation Approach

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  • Cororaton, Caesar B.

Abstract

The paper employs an integrated CGE-microsimulation approach to analyze the possible effects of the Philippine-Japan bilateral agreements on unemployment, income distribution and poverty. The results indicate contraction in agriculture but expansion in industry, particular in the nonfood manufacturing sector. Factor prices drop in agriculture while increase in industry. Unemployment in agriculture deteriorates while in industry improves. Thus income inequality worsens. However, poverty improves, but the improvement is much higher in the National Capital Region (NCR) than in other areas, especially rural. NCR has the least poverty incidence while rural has the highest. The generally favourable poverty effects are due to the overall increase in household income and the reduction in consumer prices.

Suggested Citation

  • Cororaton, Caesar B., 2004. "Philippine-Japan Bilateral Agreements: Analysis of Possible Effects on Unemployment, Distribution and Poverty in the Philippines Using CGE-Microsimulation Approach," Discussion Papers DP 2004-01, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2004-01
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    Citations

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    Cited by:

    1. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1).
    2. Rodrigue Nobosse Tchoffo & Ibrahim Ngouhouo, 2020. "Cameroon’s Bilateral Economic Partnership Agreement: A Microsimulation Approach," Applied Economics and Finance, Redfame publishing, vol. 7(2), pages 67-84, March.
    3. Wignaraja, Ganeshan & Lazaro, Dorothea & DeGuzman, Genevieve, 2010. "FTAs and Philippine Business: Evidence from Transport, Food, and Electronics Firms," ADBI Working Papers 185, Asian Development Bank Institute.
    4. U-Primo E. Rodriguez, 2008. "Impacts of the Free Trade Area of the Pacific (FTAAP) on Production, Consumption, and Trade of the Philippines," Development Economics Working Papers 22694, East Asian Bureau of Economic Research.
    5. Rodriguez, U-Primo E., 2008. "Impacts of the Free Trade Area of the Pacific (FTAAP) on Production, Consumption, and Trade of the Philippines," Discussion Papers DP 2008-20, Philippine Institute for Development Studies.

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