Empirical Essays in International Trade

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Empirical Essays in International Trade

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Title: Empirical Essays in International Trade
Author: Fosse, Henrik Barslund
Abstract: 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.
URI: http://hdl.handle.net/10398/8541
Date: 2012-10-11

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