Three types of trade policy adjustments to deal with an unsustainable current account deficit are examined in this paper for their economywide income and equity effects, based on the results of simulation experiments using a CGE model of the Philippine economy. The latter result, however, is counterbalanced by a substantial loss in government income. Moving to a general import surtax represents an improvement in that non-Metro Manila households are penalized less. Download full-text discussion paper .
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