IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2008-20.html
   My bibliography  Save this paper

Impacts of the Free Trade Area of the Pacific (FTAAP) on Production, Consumption, and Trade of the Philippines

Author

Listed:
  • Rodriguez, U-Primo E.

Abstract

This paper examines the economy-wide impacts of a Free Trade Area of the Asia Pacific (FTAAP) on the Philippine economy. In particular, it uses an applied general equilibrium model to determine the effects of alternative scenarios on aggregate and sectoral outputs, consumption, and international trade. The paper also compares the FTAAP to reforms which are confined to the ASEAN plus 3 and to a broader set of tariff changes that covers all the trading partners of the Philippines. The findings of the paper are as follows. First, the FTAAP is likely to benefit the Philippines in the form of higher aggregate output and employment. However, such gains are not projected for all industries as the simulation results indicate declines in the outputs of activities related to rice and corn. Second, the benefits from the FTAAP are likely to come more from the removal of tariffs on nonagriculture products. Finally, the aggregate gains from the FTAAP are larger than an arrangement which is limited to ASEAN plus 3 countries. However, the differences in the impacts do not appear to be very large.

Suggested Citation

  • 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.
    • Handle: RePEc:phd:dpaper:dp_2008-20
    as

    Download full text from publisher

    File URL: https://www.pids.gov.ph/publication/discussion-papers/impacts-of-the-free-trade-area-of-the-pacific-ftaap-on-production-consumption-and-trade-of-the-philippines
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lewis, Jeffrey D. & Robinson, Sherman & Wang, Zhi, 1995. "Beyond the Uruguay Round: The implications of an Asian free trade area," China Economic Review, Elsevier, vol. 6(1), pages 35-90.
    2. Ganeshan Wignaraja & Dorothea Lazaro & Genevieve De Guzman, 2010. "Philippines," Chapters, in: Masahiro Kawai & Ganeshan Wignaraja (ed.), Asia’s Free Trade Agreements, chapter 8, Edward Elgar Publishing.
    3. Ramon C. Clarete, 1989. "The Economic Effects of Trade Liberalization on Philippine Agriculture," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 26(2), pages 208-235, December.
    4. Warwick. J. McKibbin, "undated". "Quantifying APEC Trade Liberalization: A Dynamic Analysis," Discussion Papers 122, Brookings Institution International Economics.
    5. Cororaton, Caesar B. & Cuenca, Janet S., 2000. "An Analysis of Philippine Trade Reforms in 1995-2000 Using the 1994 APEX Model," Discussion Papers DP 2000-36, Philippine Institute for Development Studies.
    6. Caesar B. Cororaton & John Cockburn & Erwin Corong, 2005. "Doha Scenarios, Trade Reforms, and Poverty inthe Philippines: a CGE Analysis," Working Papers MPIA 2005-03, PEP-MPIA.
    7. Cororaton, Caesar B., 2003. "Analysis of Trade Reforms, Income Inequality and Poverty Using Microsimulation Approach: The Case of the Philippines," Discussion Papers DP 2003-09, Philippine Institute for Development Studies.
    8. Cabanilla, Liborio S. & Rodriguez, U-Primo E., 2006. "The Impact of a Philippine-US FTA: The Case of Philippine Agriculture," Discussion Papers DP 2006-06, Philippine Institute for Development Studies.
    9. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, November.
    10. Cabalu, Helen & Rodriguez, U-Primo, 2007. "Trade-offs in Trade Liberalization: Evidence from the Philippine 2005 Tariff Changes," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 637-663.
    11. U-Primo E. Rodriguez & Liborio S. Cabanilla, 2006. "The Impact of a Philippine-US FTA : The Case of Philippine Agriculture," Development Economics Working Papers 22693, East Asian Bureau of Economic Research.
    12. 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.
    13. Caesar B. Cororaton, 2006. "The Impact of Trade Reform in the 1990s on Welfare and Poverty in the Philippines," Working Papers MPIA 2006-11, PEP-MPIA.
    14. Cororaton, Caesar B., 1994. "Structural Adjustment Policy Experiments: The Use of Philippine CGE Models," Discussion Papers DP 1994-03, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Briones, Roehlano M. & David, Cristina C. & Inocencio, Arlene B. & Intal, Ponciano Jr. S. & Geron, Maria Piedad S. & Ballesteros, Marife M., 2012. "Monitoring and Evaluation of Agricultural Policy Indicators," Discussion Papers DP 2012-26, Philippine Institute for Development Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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(01).
    3. Briones, Roehlano M. & David, Cristina C. & Inocencio, Arlene B. & Intal, Ponciano Jr. S. & Geron, Maria Piedad S. & Ballesteros, Marife M., 2012. "Monitoring and Evaluation of Agricultural Policy Indicators," Discussion Papers DP 2012-26, Philippine Institute for Development Studies.
    4. Wang, Zhi, 1997. "The Impact of China and Taiwan Joining the World Trade Organization on U.S. and World Agricultural Trade: A Computable General Equilibrium Analysis," Technical Bulletins 184382, United States Department of Agriculture, Economic Research Service.
    5. Kym Anderson & Mari Pangestu, 1998. "Structural Changes in a Reforming World Economy: Implications for Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 34(3), pages 85-113.
    6. Cristela Dakila & Francisco G. Dakila Jr., 2006. "Modeling the Impact of Overseas Filipino Workers Remittances on the Philippine Economy," EcoMod2006 272100014, EcoMod.
    7. Clements, Kenneth & Mariano, Marc Jim & Verikios, George, 2022. "Expenditure patterns, heterogeneity, and long-term structural change," Economic Modelling, Elsevier, vol. 113(C).
    8. Ballard, Charles L. & Cheong, Inkyo, 1997. "The effects of economic integration in the Pacific Rim: A computational general equilibrium analysis," Journal of Asian Economics, Elsevier, vol. 8(4), pages 505-524.
    9. Haider A. Khan, 2007. "Social Accounting Matrix: A Very Short Introduction for Economic Modeling," CIRJE F-Series CIRJE-F-477, CIRJE, Faculty of Economics, University of Tokyo.
    10. Bjarne S. Jensen, 2004. "Pareto Efficiency, Relative Prices, and Solutions to CGE Models," DEGIT Conference Papers c009_006, DEGIT, Dynamics, Economic Growth, and International Trade.
    11. Karim, Mohamed, 2013. "Taxation of agricultural sector in Morocco. An Analysis using a Dynamic Computable General Equilibrium Model," MPRA Paper 45622, University Library of Munich, Germany.
    12. Govinda R. Timilsina & Ram M. Shrestha, 2002. "General equilibrium analysis of economic and environmental effects of carbon tax in a developing country: case of Thailand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(3), pages 179-211, September.
    13. C M Dufournaud & J T Quinn & J J Harrington, 1994. "A Partial Equilibrium Analysis of the Impact of Introducing More-Efficient Wood-Burning Stoves into Households in the Sahelian Region," Environment and Planning A, , vol. 26(3), pages 407-414, March.
    14. Edgar Cudmore & John Whalley, 2005. "Border Delays and Trade Liberalization," NBER Chapters, in: International Trade in East Asia, pages 391-406, National Bureau of Economic Research, Inc.
    15. Zemskov Peter & Zemskov Sergey, 2000. "Nizhny Novgorod: Computable General Equilibrium in One Region with Barter and Arrears," EERC Working Paper Series 99-14e, EERC Research Network, Russia and CIS.
    16. McDonald, Scott & Robinson, Sherman & Thierfelder, Karen, 2008. "Asian Growth and Trade Poles: India, China, and East and Southeast Asia," World Development, Elsevier, vol. 36(2), pages 210-234, February.
    17. Duchin, Faye & Lange, Glenn-Marie, 1995. "The choice of technology and associated changes in prices in the U.S. economy," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 335-357, August.
    18. Cororaton, Caesar B., 2003. "Analyzing the Impact of Philippine Tariff Reform on Unemployment, Distribution and Poverty Using CGE-Microsimulation Approach," Discussion Papers DP 2003-15, Philippine Institute for Development Studies.
    19. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    20. Paul Levine & Emanuela Lotti & Joseph Pearlman & Richard Pierse, 2010. "Growth And Welfare Effects Of World Migration," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(5), pages 615-643, November.

    More about this item

    Keywords

    international trade; Philippines; free trade area; applied general equilibrium models; Asia Pacific Economic Cooperation;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2008-20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael Ralph M. Abrigo (email available below). General contact details of provider: https://edirc.repec.org/data/pidgvph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.