How Much Did China's WTO Accession Increase Economic Growth in Resource-Rich Countries?
AbstractWe provide an estimate of China’s impact on the growth rate of resource-rich countries after its WTO accession on 11 December 2001. Our empirical approach follows the logic of the differences-in-differences estimator. In addition to temporal variation arising from the WTO accession, which we argue was exogenous to other countries’ growth trajectories, we exploit spatial variation arising from differences in natural resource wealth. This allows us to compare changes in economic growth in the post-accession period relative to the pre-accession period between countries that were able to benefit from the surge in demand for industrial commodities brought about by China’s WTO accession and countries that were less able to do so. We find that roughly one tenth of average annual post-accession growth in resource-rich countries was due to China’s increased appetite for commodities. We use this finding to inform the debate about what will happen to economic growth in resource-rich countries as China rebalances and its demand for commodities weakens.
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Bibliographic InfoPaper provided by Department of Business and Economics, University of Southern Denmark in its series Discussion Papers of Business and Economics with number 15/2013.
Length: 26 pages
Date of creation: 03 Oct 2013
Date of revision:
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Postal: Department of Business and Economics, University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark
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Fax: 65 50 32 37
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Economic growth; natural resources; WTO; China;
Other versions of this item:
- Barnebeck Andersen,Thomas & Barslund, Mikkel & Worm Hansen, Casper & Harr, Thomas & Sandholt Jensen, Peter, 2013. "How much did China’s WTO accession increase economic growth in resource-rich countries?," CEPS Papers 8471, Centre for European Policy Studies.
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
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