Welfare and inequality impacts of tariff reduction in Cambodia : policy implication to protect rural poor households
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2015
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Abstract
Although there is no strong evidence that trade liberalization will deepen poverty or vulnerability, neither is there a guarantee that the poor will benefit. Since switching to the market economy in 1993, Cambodia has embraced a series of tariff reductions to fulfill its commitment for freer trade openness in line with AFTA, WTO and other regional trade negotiations. This study analyzes welfare and inequality impacts on Cambodia’s households (Phnom Penh, Urban, and Rural) from tariff reduction. A redistribution policy in terms of government transfer and income tax exemption should be given priority to target those living in rural areas.
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TRADE AGREEMENTS, TARIFF REDUCTIONS, INCOME DISTRIBUTION, TRADE LIBERALIZATION, RURAL COMMUNITIES, ECONOMIC POLICY, POVERTY ALLEVIATION, MATHEMATICAL MODELS, PHYSICAL INFRASTRUCTURE, VALUE ADDED TAX