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Political economy of China¡¯s trade policy: the evidence from industrial protection in 1990s

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  • SHENG Bin

    (The Institute of International Economics, Nankai University, Tianjin 300071, China)

Abstract

The theory of the political economy of trade policy, combining public choice and neoclassical trade theories, studies the level and pattern of trade intervention from the perspective of policy decision-making process, by stressing on income distribution instead of economic efficiency. The paper attempts to apply such an endogenous trade theory to an empirical study of China. On the basis of a formal revised model of political economy of trade protection, it tests theoretical hypotheses concerning the political and economic determinants of cross-sector trade protection in the Chinese industry at various periods. The results show that trade protection in China fits into China s national development strategy of fast catching-up with the developed world.

Suggested Citation

  • SHENG Bin, 2006. "Political economy of China¡¯s trade policy: the evidence from industrial protection in 1990s," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 1(3), pages 406-432, September.
    • Handle: RePEc:fec:journl:v:1:y:2006:i:3:p:406-432
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0014-5
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    More about this item

    Keywords

    political economy; China; trade policy; industrial protection;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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