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GAME-THEORETIC ANALYSIS OF CHINA's WTO ACCESSION

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Author Info
Eric W. Bond
Stephen Ching
Edwin L.-C. Lai

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Abstract

This paper studies the determination of split of total surplus among the negotiating parties (member countries and the acceding country) in a WTO accession negotiation using a sequential bargaining model. In particular, we are interested in the effect of the most-favored-nation (MFN) principle on the negotiation outcome. The MFN principle says that any tariff reduction offered by the applicant for accession has to be automatically granted to all existing members. The model suggests that it is quite plausible that China's share of surplus is more when MFN is in place. Copyright 2003 Blackwell Publishers Ltd (a Blackwell Publishing Company)..

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Article provided by Blackwell Publishing in its journal Pacific Economic Review.

Volume (Year): 8 (2003)
Issue (Month): 2 (06)
Pages: 117-125
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Handle: RePEc:bla:pacecr:v:8:y:2003:i:2:p:117-125

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bagwell, Kyle & Staiger, Robert W., 2001. "Reciprocity, non-discrimination and preferential agreements in the multilateral trading system," European Journal of Political Economy, Elsevier, vol. 17(2), pages 281-325, June. [Downloadable!] (restricted)
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  2. Bond, Eric W & Syropoulos, Costas & Winters, L Alan, 2000. "Deepening of Regional Integration and Multilateral Trade Agreements," CEPR Discussion Papers 2480, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  1. Ludema, Rodney D & Mayda, Anna Maria, 2005. "Do Countries Free Ride on MFN?," CEPR Discussion Papers 5160, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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    • Rodney Ludema (Georgetown University) and Anna Maria Mayda (Georgetown University and CEPR), . "Do Countries Free Ride on MFN?," Working Papers gueconwpa~05-05-13, Georgetown University, Department of Economics. [Downloadable!]
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