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Abstract

Vietnam has negotiated a series of bilateral and multilateral trade agreements and has made significant steps in integrating into the world economy. This integration is likely to have both positive and negative effects on different stakeholders in the economy. This paper measures the effects on the welfare of Vietnam’s small livestock producers' by linking a household model and the GTAP trade model. A GTAP utility SplitCom is used to separate out pig and poultry prior to running several trade liberalisation scenarios. A recursive household model with a two-stage LES-AIDS model on the consumption side and Cobb-Douglas functions on the production side is used to estimate the likely impacts on the behavior and welfare of the farm household. The household model is linked to the trade model through changes in the prices of inputs and outputs arising from different trade scenarios.

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