Trade and Development: Lessons from Vietnam's Past Trade Agreements

World Development 37(2):341-353. DOI: 10.1016/j.worlddev.2008.04.005 (2009)

Posted: 13 Dec 2014

See all articles by Finn Tarp

Finn Tarp

University of Copenhagen - Department of Economics

Philip C. Abbott

Purdue University

Jeanet Sinding Bentzen

University of Copenhagen - Department of Economics

Date Written: January 2009

Abstract

Summary History, not predictions of CGE models or cross-country growth studies, shows a strong relationship between trade and development. Vietnam's experience with bilateral trade agreements, comparing actual outcomes with predictions from existing models, demonstrates this and the limitations of research methodologies. Forecasts for Vietnam greatly underestimated the impact of past agreements because tariff reform was not the main factor driving adjustments. Addressing market imperfections through institutional reform was central to bringing output and trade expansion. Key questions for future research are whether policy reform will result in new institutional changes, and how resulting incentives determine the evolution of investment by sector.

Suggested Citation

Tarp, Finn and Abbott, Philip C. and Bentzen, Jeanet, Trade and Development: Lessons from Vietnam's Past Trade Agreements (January 2009). World Development 37(2):341-353. DOI: 10.1016/j.worlddev.2008.04.005 (2009). Available at SSRN: https://ssrn.com/abstract=2537384

Finn Tarp (Contact Author)

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Philip C. Abbott

Purdue University ( email )

Global Studies Program
1310 Krannert Building
West Lafayette, IN 47907-1310
United States

Jeanet Bentzen

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

Register to save articles to
your library

Register

Paper statistics

Abstract Views
157
PlumX Metrics