CGE Tax Model for Vietnam

Date

1997

Journal Title

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Abstract

Vietnam has started its economic renovation (…) and opening policy in 1986. The country is passing through a phase of industrialisation and modernisation. One of the most important socio-economic reforms for the last decade in Vietnam is the fiscal reform which is entering since 1995 in the second stage. In this context our objective us, by constructing an appropriate CGE model, to study possible impacts of proposed tax policy on economic growth and revenue distribution among different categories of population (household groups) in Vietnam. It is important to note that existing in Vietnam until now equilibrium models are not suited for the above-mentioned purpose. The CGE tax model presented in this paper follows the modelling approach of Shoven and Whalley (1992). First, we try to elaborate a relatively simple model to get more transparency and insights with the available socio-economic data of Vietnam in 1995 (base year). We begin our presentation by describing the model structure in Section I. Data problems for the model will be discussed in Section II. Section III is devoted to some questions of running the model and reports the numerical results. Finally, remarks and some brief conclusions will be given in Section IV. It is worthnoting that the model uses essentially the data given in the Social Accounting Matrix (SAM) for Vietnam constructed, as well as the model itself, in the framework of the MIMAP-VIETNAM Project and presented in our previous paper.

Description

Contents: Appendix, Social Accounting Matrix, Vietnam, 1995

Keywords

ECONOMIC ANALYSIS, ECONOMIC MODELS, ECONOMIC REFORM, FISCAL POLICY, MACROECONOMICS, POLICY MAKING, PUBLIC FINANCE, VIET NAM

Citation

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