Research Activities
Research Projects 2025
The Distributional Impact of Free Trade Agreements: The Case of Cambodia
Outline
This research project examines the distributional impact of trade liberalization in the case of Cambodia by focusing on tariff reductions from free trade agreements (FTA). We adopt a standard framework that household welfare is defined in income and expenditure channels and use the framework to estimate the impact of FTA on household income and expenditure. Regarding the income effect, we estimate a relationship between household income and tariff rates and calculate household income changes due to FTA tariff reductions. Regarding the expenditure effects, we estimate tariff pass-through rates for three origins of goods: imported from abroad, produced in a domestic market, or produced at home for self-sufficiency. Using an estimate of tariff pass-through rates, we calculate household expenditure changes resulting from FTA tariff reductions. By aggregating income and expenditure changes at the household-level, we quantify household welfare changes from FTA. As a result, we shed light on a question of whether the FTA in Cambodia are pro-poor or pro-rich.
Period
April 2025 - March 2027
Members
| Role | Member |
|---|---|
| [ Organizer ] | Tanaka, Kiyoyasu |
| [ Co-researcher ] | Mi Dai(Beijing Normal University Associate Professor) |
*Affiliations are as of April 2025.
Expected Outcome
- Paper Submission to Peer-Reviewed Journal