Labour Market Effects of Non-Tariff Measures: A Computable General Equilibrium for the Food Processing Sector in Malaysia

Given Japan’s substantial exposure to many kinds of natural hazards, such as earthquakes, tsunamis, and typhoons, it has been a priority to invest in resilience, guided by evidence-based modeling. In 2011, the Great East Japan Earthquake and Tsunami became the costliest natural disaster ever recorded. This study applied a geographic information system using assumed tsunami-affected data calibrated in a recursive computable general equilibrium model to perform an economic impact assessment and an estimated recovery budget. We simulated 100 years of tsunamis and a 10-year sectoral recovery package for the sectors related to the ocean economy, such as kelp, net fishery, squid, other fisheries, food processing, and recreation, with a capital-use subsidy policy regarding investment strategy. We found that the aqua sector is incredibly vulnerable and would not recover with the capital-use subsidy within Hakodate City’s financial capability. Nevertheless, the recovery policy could still ease output price changes. On the other hand, the recreation sector could recover to pre-disaster conditions, but at huge fiscal and social costs. Meanwhile, the food processing sector’s recovery could generate social benefits and have a spillover effect on other fisheries sectors. The application of geographic information system in tsunami-prone areas could strengthen the precision of economic analysis. Such evidence-based modeling could visualize the economic impact to assist policymakers and stakeholders in foreseeing disaster risk and implementing more effective building resilience measures.

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Import Tariffs and Informal Labour Market: A Computable General Equilibrium (CGE) Analysis for Turkey

Review of Economic Analysis ◽

10.15353/rea.v13i2.4046 ◽

2021 ◽

Vol 13 (2) ◽

pp. 213-234

Author(s):

Hale Akbulut ◽

Hüseyin Taylan Eğen

Keyword(s):

General Equilibrium ◽

Labour Market ◽

Computable General Equilibrium ◽

Negative Relationship ◽

Import Tariff ◽

Trade Reforms ◽

Informal Labour ◽

Tariff Rates ◽

Nonlinear Simultaneous Equations ◽

The Relationship

From the 1980s to onwards trade liberalization policies have been widely used in many countries. This process has significant impacts on many economic aspects one of which is on the labour market. However, the direction of the relationship between trade reforms and the labour market is controversial. This study aims to analyse the effects of a specific trade reform of import tariff changes on the formal and informal labour market for Turkey. For that purpose, we benefit from Computable General Equilibrium (CGE) Model that relies on nonlinear simultaneous equations. We construct an updated Social Accounting Matrix (SAM) which is compatible with our model. Our findings indicate that while there is a positive relationship between formal labour employment in total and import tariff rates, the negative relationship occurs between informal employment and tariff rates.

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Evaluation of external market effects and government intervention in Malaysia's agricultural sector: a computable general equilibrium framework

Agricultural Economics ◽

10.1016/0169-5150(94)00024-7 ◽

1994 ◽

Vol 11 (2-3) ◽

pp. 237-256 ◽

Cited By ~ 8

Author(s):

K Yeah

Keyword(s):

General Equilibrium ◽

Computable General Equilibrium ◽

Agricultural Sector ◽

Government Intervention ◽

External Market ◽

Market Effects

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What Are the Economic and Labour Market Effects of an Income Tax Reduction Targeted at Older Workers?

Economics Research International ◽

10.1155/2012/461597 ◽

2012 ◽

Vol 2012 ◽

pp. 1-12

Author(s):

Maxime Fougère ◽

Simon Harvey ◽

Bruno Rainville

Keyword(s):

Labour Market ◽

Computable General Equilibrium ◽

Older Workers ◽

Income Tax ◽

Labour Supply ◽

Private Investment ◽

Computable General Equilibrium Model ◽

Market Effects ◽

Tax Reduction ◽

Macroeconomic Impact

This paper explores the economic and labour market effects of implementing a tax reduction targeted at older workers. The analysis is conducted with a life-cycle computable general equilibrium model calibrated on Canadian data. The analysis shows that implementing a permanent income tax reduction for workers aged 60 and over has only small macroeconomic effects because the labour supply increase of older workers is partly offset by a reduction in the labour supply at core ages. This induced effect also discourages savings and generates crowding out through private investment but has a favourable impact on lifetime economic welfare. The macroeconomic impact is much larger when the income tax reduction is temporary because workers no longer reduce their hours at core ages and there is no reduction in savings. However, since only current middle-aged and older workers benefit from the tax cut, a temporary income tax cut reduces intergenerational equity.

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