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Abstract
This paper conducts a three-stage stage analysis to understand the gender dimensions and poverty implications of world trade liberalization in the Philippines. First, the standard GTAP model is used to simulate a multilateral trade liberalization scenario. Results from this GTAP simulation—i.e., vectors of changes in exports prices, exports volume and import volumes—are then used as shocks to a Philippine CGE model (PHILGEM) following the method of Horridge and Zhai (2006). The Philippine then identifies the effects: from gross domestic product and welfare to output and factor supplies and demands; from commodity and factor prices to employment by gender. Finally, vectors of changes in factor prices, employment levels and consumer prices from the Philippine model are used as inputs to a household survey-based micro-simulation module to identify impacts on the levels of poverty and income distribution. Simulation results show that global trade liberalization helps reduce the gender-wage gap in the Philippines as females wages increase more than their male counterparts. The employment effects also show that women do a bit better than men as they are under-represented in contracting agriculture and processed food sectors but moderately represented in both expanding non-food manufacturing and services.