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Regional and National Perspectives of China's Integration into the WTO: A CGE Inquiry with Emphasis on the Agricultural Sector

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  • Xinshen Diao
  • Agapi Somwaru
  • Francis Tuan

Abstract

China's integration in the World Trade Organization (WTO) is already on its fast track. Understanding the complexity of China's dynamic adjustment resulting from its membership in the WTO and the differential regional impacts within China is very important and poses crucial challenge in evaluating its impacts. In this study, we make an attempt to incorporate seven regional commodity†detailed models into a dis†aggregated multi†sector and multi†region China Computable General Equilibrium (CGE) framework. This framework has allowed us to evaluate the impacts of China's integration into the WTO at both national and regional levels and analyze the inter†linkages between China's provincial agricultural markets. Using the framework and assumptions about factor mobility, we assess the impacts on China's agricultural and non†agricultural sectors (regionally and nationally) by reduction of its trade policy distortions, such as tariffs rate changes and quantitative restrictions. We also evaluate the structural changes on China's national and regional production and trade as China implements its commitments and moves into the WTO.

Suggested Citation

  • Xinshen Diao & Agapi Somwaru & Francis Tuan, 2003. "Regional and National Perspectives of China's Integration into the WTO: A CGE Inquiry with Emphasis on the Agricultural Sector," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 15(2), pages 84-105, July.
    • Handle: RePEc:bla:revurb:v:15:y:2003:i:2:p:84-105
    DOI: 10.1111/1467-940X.00067
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    Cited by:

    1. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Trade policy impacts under alternative land market regimes in rural China," China Economic Review, Elsevier, vol. 23(4), pages 1071-1089.
    2. Jiao Wang & David G. Mayes & Guanghua Wan, 2005. "Income Distribution and Labour Movement in China After WTO Membership: a CGE Analysis," WIDER Working Paper Series RP2005-38, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:zbw:bofitp:2005_018 is not listed on IDEAS
    4. Thomas Rutherford & Hannu Torma†, 2010. "Efficiency of Fiscal Measures in Preventing Out-migration from North Finland," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 465-475.
    5. Wang, Jiao & Mayes, David & Wan, Guanghua, 2005. "Effects of WTO membership on income distribution and labour movement in China : A CGE analysis," BOFIT Discussion Papers 18/2005, Bank of Finland, Institute for Economies in Transition.
    6. Hewitt, Joanna, 2008. "Impact evaluation of research by the International Food Policy Research Institute on agricultural trade liberalization, developing countries, and WTO's Doha negotiations:," Impact assessments 28, International Food Policy Research Institute (IFPRI).

    More about this item

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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