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Abstract:
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The thesis consists of an introduction followed by three numbered chapters (independent
papers). It covers topics in international trade, and in di¤erent ways the thesis investigates
aspects of heterogeneity. The rst chapter is coauthored with Pascalis Raimondos-Møller. The
version of this chapter is published in the CESifo Working Paper Series and serves as the
nal background paper for the compressed journal article published in Review of Development
Economics, May 2012. The second chapter is coauthored with Madhura Maitra, senior PhD
student at Columbia University at the time. The third chapter is a solo paper.
In the rst chapter we introduce a traditional macro model of trade and change the com-
petitive environment by introducing state-owned enterprises. We also include heterogenous
households to analyze e¤ects on the income distribution. The chapter focuses on Vietnam s
accession to the World Trade Organization (WTO) in 2007. Upon entry, Vietnam was granted
an accession period lasting till 2014. During this period tari¤s would have to fall according
to the accession agreement. This rst chapter evaluates this 2007-2014 trade liberalization by
building an applied general equilibrium model and calibrating it to the Vietnamese data. The
model pays careful attention to the fact that Vietnam has many state-owned enterprises that
do not behave in a pro t maximizing way. The model simulations show that the WTO imposed
tari¤ reforms will reduce the overall welfare level of the Vietnamese households. Moreover, the
biggest loss of income will take place among the poor rural households in Vietnam. We propose
other tari¤ reforms that both raise overall welfare and reduce income inequality. |
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