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 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 seeks to measure 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 several trade liberalisation scenarios being run. A recursive household model with a two-stage LES-AIDS model on consumption side and Cobb-Douglas functions on production side are used. Impacts of likely changes in the prices of inputs and outputs arising from different trade scenarios on behavior and welfare of the farm household are presented.