Household welfare impacts of China's accession to the World Trade Organization
AbstractThe authors use China's national household surveys for rural and urban areas to measure and explain the welfare impacts of the changes in goods and factor prices attributed to WTO accession. Price changes are estimated separately using a general equilibrium model to capture both direct and indirecteffects of the initial tariff changes. The welfare impacts are first-order approximations based on a household model incorporating own-production activities and are calibrated to the household-level data imposing minimum aggregation. The authors find negligible impacts on inequality and poverty in the aggregate. However, diverse impacts emerge across household types and regions associated with heterogeneity in consumption behavior and income sources, with possible implications for compensatory policy responses.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3040.
Date of creation: 31 May 2003
Date of revision:
Labor Policies; Environmental Economics&Policies; Payment Systems&Infrastructure; Economic Theory&Research; Health Economics&Finance; Poverty Lines; Inequality; Health Economics&Finance; Environmental Economics&Policies; Economic Theory&Research;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
- NEP-SEA-2004-08-16 (South East Asia)
- NEP-TRA-2004-08-16 (Transition Economics)
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