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Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China

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Author Info
Joseph F. Francois () (Department of Economics, Erasmus Universiteit Rotterdam, and CEPR)
Dean Spinanger () (Institute for World Economics, Kiel)

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Abstract

This paper is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China’s motor vehicle sector. The analysis is conducted using a 23 sector–25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-049/2.

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Date of creation: 04 May 2004
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Handle: RePEc:dgr:uvatin:20040049

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Web page: http://www.tinbergen.nl/

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Related research
Keywords: China Accession to WTO Automobile Sector

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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