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c3 CN What Is The Impact Of Free Trade Agreements – TekSolution

What Is The Impact Of Free Trade Agreements

Dasgupta, P. and Mukhopadhyay, K. (2017), “The impact of the TPP on selected ASEAN economies,” Journal of Economic Structures, Vol. Thu, M. and Lee, H. (2015), “Assessing the impact of deeper trade reform in Vietnam using a general balance framework,” Journal of Southeast Asian Economies, Vol. Truc, N.T.T. (2016), “The impact of production tax on agriculture sector in Vietnam: a computable computable computable general equirbal , Asian Research Journal of Mathematics, Vol. Ganguly and Das (2017) followed a CGE modeling approach and built a SAM to assess the impact of FDI and trade liberalization in India. Its article showed that any change in trade policy will change not only the volume of exports and imports from different sectors, but also the level of GDP, the exchange rate and government revenues. Erero and Bonga-Bonga (2018) recently conducted a study to assess the impact of tariff reduction on Congo`s economy using a CGE model.

In its paper, it was found that formal sector production and employment increase when tariffs fall, because this policy of tariff reduction fuels import competition, and local producers must survive import competition by attempting to import input-efficient technologies and production practices. Ahmed and O`Donoghue (2010) used Pakistan`s Social Accounting Matrix (SAM) for 2002 and developed a CGE model to assess the impact of lower tariff rates on Pakistan`s macroeconomic and well-being indicators. They concluded that reducing tariffs not only increases the level of social assistance, but also increases the value of exports, household consumption and gross fixed capital formation. Similarly, Khorana and Narayanan (2017), Shaikh (2009) and Winchester (2009) used a CGE model to successively assess the impact of tariff reductions on the economies of India, Pakistan and New Zealand. They have shown that reducing tariffs will benefit social services and strengthen GDP growth, labour and inputs (. B, for example, capital and labour). It is clear from the above results that Vietnam`s trade balance will be in deficit due to zero industrial tariffs. More and more industrial products from EU countries will invade the Vietnamese market, which will lead to fierce competition for domestic companies, but will create a great opportunity for Vietnamese companies to be able to improve the business environment, improve product quality and diversify product types.

To study the impact of EVFTA, this paper uses the classic static model CGE, which is considered an extension of the input-exit table successfully developed by Wasilly Leontief in 1986. In theory, before using a CGE model, the authors build the VSAM (see Table I) based on data from the Vietnamese entry-exit table for 2012 (Vietnam General Statistics Office, 2015); CIEM-CONTRE, 2016), which includes 164 sectors ranked in three main sectors (agriculture, industry and services) in terms of the classification of Vietnam`s Ministry of Planning and Investment (2007).