Date Published:
Jun 01, 2004
Discussion Papers
Focus Area(s):
DP 2004-40

This study analyzes the potential impact of the Philippines-Japan Free Trade Agreement (FTA) on the Philippine economy in case of the Philippines' discriminately unilateral tariff reduction on import from Japan using a computable general equilibrium model for the Philippine economy. The result of the assessment of this study indicates that even only a reduction of tariff rates on imports from Japan would expand the Philippines' import from Japan and in total by 2.36-8.58 and 0.35-0.61 percent, respectively. Consumer welfare measured in Compensated and Equivalent Variation increase in all of 5 households classified by income level, not in a proportional way for each household however. More favorable impact on all households would be expected if not only a tariff reduction but also other factors such as liberalization of foreign investment are included in the agreement.


This publication has been cited 2 times

In other Publications
  1. Lazaro, Dorothea C., Ganeshan Wignaraja, and Genevieve De Guzman. 2011. Factors affecting use or nonuse of Free Trade Agreements in the Philippines. Philippine Journal of Development PJD 2009, 36, no. 2. Philippine Institute for Development Studies.
  2. Wignaraja, Ganeshan, Dorothea Lazaro, and Genevieve De Guzman. 2010. FTAs and Philippine business: Evidence from transport, food, and electronics firms. Trade Working Papers 22880. East Asian Bureau of Economic Research.

Main Menu

Secondary Menu