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Effects of Reducing Tariffs and Endogenous Productivity Growth

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  • Yin Hua Mai

Abstract

In this study, the effects of China's WTO commitments of reducing tariff and non-tariff barriers are analysed using a Computable General Equilibrium (CGE) model of China. In particular, this study draws the attention of policy makers to a different regional employment outcome when trade-liberalisation induced productivity improvements are taken into account. Trade-liberalisation induced productivity improvements occur when local producers survive import competition by seeking (most likely importing) input-saving technologies and production practice. Such endogenous productivity improvements, based on empirical estimates, are endogenously represented in the model.

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Bibliographic Info

Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-139.

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Date of creation: Dec 2003
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Handle: RePEc:cop:wpaper:g-139

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  1. Yin Hua Mai & Mark Horridge & Frances Perkins, 2003. "Estimating the effects of China's Accession to the World Trade Organisation," Centre of Policy Studies/IMPACT Centre Working Papers g-137, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
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Cited by:
  1. Butt, Muhammad Shoaib & Bandara, Jayatilleke S., 2008. "National and Regional Impacts of Increasing Non-Agricultural Market Access by Developing Countries – the Case of Pakistan," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 38(2), pages 277-311, September.
  2. Wim Naudé & Riaan Rossouw, 2011. "Export diversification and economic performance: evidence from Brazil, China, India and South Africa," Economic Change and Restructuring, Springer, vol. 44(1), pages 99-134, April.
  3. Yin Hua Mai & Mark Horridge & Frances Perkins, 2003. "Estimating the effects of China's Accession to the World Trade Organisation," Centre of Policy Studies/IMPACT Centre Working Papers g-137, Victoria University, Centre of Policy Studies/IMPACT Centre.
  4. Yinhua Mai & Philip Adams & Mingtai Fan & Ronglin Li & Zhaoyang Zheng, 2005. "Modelling the Potential Benefits of an Australia-China free Trade Agreement," Centre of Policy Studies/IMPACT Centre Working Papers g-153, Victoria University, Centre of Policy Studies/IMPACT Centre.
  5. Yinhua Mai, 2006. "Removing border protection on wheat and rice: effects on rural income and food securities in China," Centre of Policy Studies/IMPACT Centre Working Papers g-160, Victoria University, Centre of Policy Studies/IMPACT Centre.

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