The Impact of Trade Reform in the 1990s on Welfare and Poverty in the Philippines

PEP working paper serie 2006-11

23 Pages Posted: 17 May 2018 Last revised: 12 Jul 2018

See all articles by Caesar B. Cororaton

Caesar B. Cororaton

International Food Policy Research Institute (IFPRI)

John Cockburn

Partnership for Economic Policy (PEP); Université Laval; Partnership for Economic Policy (PEP)

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Date Written: May 1, 2006

Abstract

This paper analyzes the impact of trade reform on welfare and poverty in the Philippines in the 1990s using a CGE model. The results indicate that while welfare rises and poverty falls for all household groups except the poorest (those with rural unskilled private employees as household head), urban households gain more than rural households. Policy experiments involving full tariff reduction and uniform five percent tariff rate indicate generally the same pattern of effects, except that the magnitude of change is relatively larger in the former while all household groups, including the poorest, experience a reduction in poverty in the latter. Since poverty remains high and the disparity between rural and urban poverty is still wide, other poverty-reducing measures have to be designed and implemented to target those households that do not benefit much from this type of market reform.

Keywords: computable general equilibrium, international trade, poverty, Philippines

Suggested Citation

Cororaton, Caesar B. and Cockburn, John, The Impact of Trade Reform in the 1990s on Welfare and Poverty in the Philippines (May 1, 2006). PEP working paper serie 2006-11. Available at SSRN: https://ssrn.com/abstract=3173212 or http://dx.doi.org/10.2139/ssrn.3173212

Caesar B. Cororaton (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

John Cockburn

Partnership for Economic Policy (PEP) ( email )

P.O. Box 30772-00100
ICIPE - Duduville Campus, Kasarani
Nairobi
Kenya

Université Laval ( email )

Dept. of Economics
Québec, Quebec G1V 0A6
Canada

Partnership for Economic Policy (PEP) ( email )

Duduville Campus, Kasarani
P.O. Box 30772-00100
Nairobi
Kenya

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