The Impact of Trade Liberalization on Household Welfare in Vietnam

This paper evaluates the efficiency and distributional effects of trade liberalization in the context of fiscal reform in Vietnam. The analysis is performed using a computable general equilibrium (CGE) model of the Vietnamese economy calibrated to late- 1990s production and household data. It is a standard small open price taking economy model with CES nested demand and CES production functions. Results show that the efficiency gains (in term of aggregate welfare measure) from the combined tax and tariff reform are modest, but significant redistribution occurs among rich and poor household groups and between urban and rural populations. Careful analyses show that the sharpness of the redistribution falls as the country moves from only trade liberalization the combined tax and tariff reforms. Finally, additional simulations have been performed to make clearer the transmission mechanisms linking tariff policy to income distribution and household welfare. A key finding is that trade liberalization is pro-rich due essentially to the higher share of imported goods consumed by the rich.CGE model, counterfactual simulations, distributional effects, efficiency, household welfare, tariff, tax reform, trade liberalization, VAT, Vietnam

The Impact of Cash Flow Statement of Listed Firms on the Decision of Investors

This resarch is conducted for investigating the impact of cash flow statements on investors' decisions in an inefficient information market like Vietnam. Data were collected from the opinion of 150 investors in the stock market in which 75 investors received information on cash flow statement and 75 investors did not receive information of cash flow statement. We employ descriptive statistics and T-tests to examine the impact of cash flow statements on investors' decisions as well as investor confidence in the lack of information of cash flow statement. The results show that cash flow statement had no effect on investors' decisions but the lack of information on the cash flow statement reduced the confidence in making decisions. Based on the findings, some recommendations are given to investors who need to pay more attention to the cash flow statement in making decisions, and for firms that need to pay more attention to the supply information on cash flow statement.Keywords: Cash flow statement, Decision of the Investor, Inefficient marketDOI: 10.7176/RJFA/10-8-10Publication date: April 30th 201