Multiobjective optimization applied to Asean preferential trade in sugar | |
| Author | Acio, Elisa C. |
| Call Number | AIT Thesis no. IE-80-01 |
| Subject(s) | Sugar Mathematical optimization |
| Note | A thesis submitted in partial fulfilment of the requirement for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | In line with the ASEAN Concord Declaration that "expansion of trade among member states shall be facilitated through cooperation on basic commodities, particularly food ... ", this research suggests a model through which ASEAN preferential trading agreements can be implemented objectively. A multi objective programming model is used, where, for a given product, the conflicting goals of the importing and exporting member countries are taken into consideration. The various objectives are unified using the conventional weighting method, giving rise to a single objective function which maximizes revenue inflow to the region. The objective function is constrained by demand requirements and supply availability. Two models are formulated, one for unconstrained and another for restricted, or preferential trade. The primal solution of the problem pinpoints regional and extra regional destinations of the product in question. Dual values are, in turn, used for the determination of the tariff amounts. The latter is done by first showing that the difference in dual values under conditions of unconstrained and preferential trade represents the advantage that the extra-regional buyer/seller has over the regional buyer/seller. The model is subsequently applied to the product sugar (includes all types falling under the three-digit Standard International Trade Classification) using data projections for the year 1980. Findings indicate that if preferential trade is desired and if forecasts for 1980 hold, the present ASEAN practice of volunteering a uniform tariff cut for ASEAN products would not be effective in preventing extra-regional supplies from entering the region. For this purpose, a system of differential tariffs, whose magnitudes are derived in this study, are required. |
| Year | 1980 |
| Type | Thesis |
| School | School of Engineering and Technology |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Tabucanon, Mario T. ; Pakorn Adulbhan |
| Examination Committee(s) | Oudheusden, Dirk L. Van |
| Scholarship Donor(s) | German Academic Exchange Service |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1980 |