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Effects of Reducing Tariffs and Endogenous Productivity Growth

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Author Info
Yin Hua Mai

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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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File URL: http://www.monash.edu.au/policy/ftp/workpapr/g-139.pdf
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Paper provided by Monash 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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Find related papers by JEL classification:
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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  1. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
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  1. Godbertha Kinyondo & Margaret Mabugu, 2008. "The General Equilibrium Effects of a Productivity Increase on the Economy and Gender in South Africa," Working Papers 200801, University of Pretoria, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-9.

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