The effects of Mega-Regional Trade Agreements on Vietnam

Tomoo Kikuchi*, Kensuke Yanagida, Huong Vo

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

While most studies conclude that Vietnam would have benefited greatly from the now suspended Trans-Pacific Partnership, the country nevertheless stands to gain from participation in other still promising regional frameworks, including the EU-Vietnam Free Trade Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, and the Free Trade Area of the Asia-Pacific. This paper analyzes how Vietnam's economy is likely to be affected by these regional frameworks. We apply a static CGE model, incorporating the effects of capital accumulation, labor supply changes, and productivity growth stemming from trade liberalization. We also analyze “middle income trap” scenarios, in which Vietnam's growth factors fall below the full-potential level and draw policy implications.

Original languageEnglish
Pages (from-to)4-19
Number of pages16
JournalJournal of Asian Economics
Volume55
DOIs
Publication statusPublished - 2018 Apr
Externally publishedYes

Keywords

  • Computable general equilibrium model
  • Mega-Regional Trade Agreement
  • Middle income trap
  • Structural change
  • Vietnam's economy

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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