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Implications of Growth in China for the U.S. and Other Countries

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  • Zhuang, Renan
  • Koo, Won W.
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    Abstract

    We investigate the effects of China's economic growth on various sectors in the United States and other countries and regions, using a multi-region Global Trade Analysis Project (GTAP) model. The results indicate that all countries and regions, except South Korea and South Asian countries, would benefit from China's rapid economic growth. The welfare gain varies significantly across the countries and regions. Hong Kong and Taiwan would benefit the most from mainland China's economic growth in terms of per capita welfare gains. U.S. bilateral trade balance with China would improve in the sectors of grain and other primary agricultural products, but it would deteriorate in the sectors of textiles and high-tech manufacturing products.

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    File URL: http://purl.umn.edu/10257
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    Bibliographic Info

    Paper provided by Western Agricultural Economics Association in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon with number 10257.

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    Date of creation: 2007
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    Handle: RePEc:ags:waeapo:10257

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    Keywords: International Development;

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    1. McKibbin, W.J. & Huang, Y., 1996. "Rapid Economic Growth in China: Implications for the World Economy," Papers 130, Brookings Institution - Working Papers.
    2. Hertel, Thomas & Arndt, Channing, 1997. "China in 2005: Implications for the Rest of the World," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 505-547.
    3. Dean A. DeRosa & John P. Gilbert, 2005. "Predicting Trade Expansion under FTAs and Multilateral Agreements," Working Paper Series WP05-13, Peterson Institute for International Economics.
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