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Impacts of China's Accession to the World Trade Organization

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Author Info

  • Elena Ianchovichina
  • Will Martin

Abstract

This article presents estimates of the impact of China's accession to the World Trade Organization. China is estimated to be the biggest beneficiary (US$31 billion a year from trade reforms in preparation for accession and additional gains of $10 billion a year from reforms after accession), followed by its major trading partners that also undertake liberalization, including the economies in North America, Western Europe, and Taiwan (China). Accession will boost manufacturing sectors in China, especially textiles and apparel, which will benefit directly from the removal of export quotas. Developing economies competing with China in third markets may suffer small losses. Accession will have important distributional consequences for China, with the wages of skilled and unskilled nonfarm workers rising in real terms and relative to those of farm workers. Possible policy changes, including reductions in barriers to labor mobility and improvements in rural education, could more than offset these negative impacts and facilitate the development of China's economy. Copyright 2004, Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal The World Bank Economic Review.

Volume (Year): 18 (2004)
Issue (Month): 1 ()
Pages: 3-27

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Handle: RePEc:oup:wbecrv:v:18:y:2004:i:1:p:3-27

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Citations

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Cited by:
  1. Jenkins, Rhys, 2008. "China?s Global Growth and Latin American Exports," Working Papers RP2008/104, World Institute for Development Economic Research (UNU-WIDER).
  2. Ghosh, Madanmohan & Rao, Someshwar, 2010. "Chinese accession to the WTO: Economic implications for China, other Asian and North American economies," Journal of Policy Modeling, Elsevier, vol. 32(3), pages 389-398, May.
  3. Ravallion, Martin & Shaohua Chen, 2004. "China's (uneven) progress against poverty," Policy Research Working Paper Series 3408, The World Bank.
  4. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
  5. Ravallion, Martin, 2004. "Looking beyond averages in the trade and poverty debate," Policy Research Working Paper Series 3461, The World Bank.
  6. Jorge N. Valero-Gil & Magali Valero, 2008. "The effects of rising food prices on poverty in Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 485-496, November.
  7. Resmini, Laura, 2006. "Theoretical and Methodological Study on Comparative Advantages in Dynamic Growth Regions, Convergence and Inequalities Patterns," Papers DYNREG03, Economic and Social Research Institute (ESRI).
  8. Ravallion, Martin, 2009. "Are There Lessons for Africa from China's Success Against Poverty?," World Development, Elsevier, vol. 37(2), pages 303-313, February.
  9. Will J. Martin & Kym Anderson & Cong S. Pham, 2009. "Effects of GATT/WTO on Asia's Trade Performance," School of Economics Working Papers 2009-11, University of Adelaide, School of Economics.
  10. Tarr, David G., 2012. "Putting services and foreign direct investment with endogenous productivity effects in computable general equilibrium models," Policy Research Working Paper Series 6012, The World Bank.
  11. Qureshi, M.S. & Wan, Guanghua, 2008. "Trade Expansion of China and India: Threat or Opportunity," Working Papers RP2008/08, World Institute for Development Economic Research (UNU-WIDER).
  12. Rutherford, Thomas & Tarr, David & Shepotylo, Oleksandr, 2005. "Poverty effects of Russia's WTO accession : modeling"real"households and endogenous productivity effects," Policy Research Working Paper Series 3473, The World Bank.
  13. Glenda Mallon & John Whalley, 2004. "China's Post Accession WTO Stance," NBER Working Papers 10649, National Bureau of Economic Research, Inc.
  14. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, 2010. "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, April.
  15. Elena IANCHOVICHINA & Will MARTIN, 2006. "Trade Impacts of China's World Trade Organization Accession," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(1), pages 45-65.
  16. Betina Dimaranan & Elena Ianchovichina & Will Martin, 2009. "How will growth in China and India affect the world economy?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(3), pages 551-571, October.
  17. Wodon, Quentin & Zaman, Hassan, 2008. "Rising food prices in Sub-Saharan Africa : poverty impact and policy responses," Policy Research Working Paper Series 4738, The World Bank.

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