The welfare of small livestock producers in Vietnam under trade liberalisation-- Integration of trade and household models

Vietnam has negotiated a series of bilateral and multilateral trade agreements and has madesignificant steps in integrating into the world economy. This integration is likely to have bothpositive and negative effects on different stakeholders in the economy. This paper seeks tomeasure the effects on the welfare of Vietnam’s small livestock producers' by linking a householdmodel and the GTAP trade model. A GTAP utility SplitCom is used to separate out pig andpoultry prior to several trade liberalisation scenarios being run. A recursive household model witha two-stage LES-AIDS model on consumption side and Cobb-Douglas functions on productionside are used. Impacts of likely changes in the prices of inputs and outputs arising from differenttrade scenarios on behavior and welfare of the farm household are presented.