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Impacts of the Doha Development Agenda on China : the role of labor markets and complementary education reforms

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  • Zhai, Fan
  • Hertel, Thomas

Abstract

The authors assess the implications of multilateral trade reforms for poverty in China. They do so by combining results from a global modeling exercise with a national CGE model that features disaggregated households in both the rural and urban sectors. They examine two trade reform scenarios: one involving global trade liberalization, and one involving possible Doha Development Agenda reforms. Using the World Bank's $2 a day poverty line, the authors find that multilateral trade reforms do in fact reduce poverty in China. The biggest reductions occur in the rural areas-largely as a result of higher prices for farm products.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3702.

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Date of creation: 01 Sep 2005
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Handle: RePEc:wbk:wbrwps:3702

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Keywords: Environmental Economics&Policies; Economic Theory&Research; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Health Economics&Finance; Poverty Assessment;

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References

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  1. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, American Economic Association, vol. 89(2), pages 281-286, May.
  2. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521266550.
  3. Tao Yang, Dennis, 1997. "China's land arrangements and rural labor mobility," China Economic Review, Elsevier, Elsevier, vol. 8(2), pages 101-115.
  4. Tao Yang, Dennis, 2004. "Education and allocative efficiency: household income growth during rural reforms in China," Journal of Development Economics, Elsevier, Elsevier, vol. 74(1), pages 137-162, June.
  5. Heckman, James J, 2003. "China's Investment in Human Capital," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 51(4), pages 795-804, July.
  6. James J. Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents," NBER Working Papers 6384, National Bureau of Economic Research, Inc.
  7. Kanbur, Ravi & Zhang, Xiaobo, 2001. "Fifty Years of Regional Inequality in China: A Journey through Revolution, Reform and Openness," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2887, C.E.P.R. Discussion Papers.
  8. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 47(4), pages 767-82, July.
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Cited by:
  1. Dilip Das, 2006. "Lean Hong Kong Harvest and the Doha Round of Multilateral Trade Negotiations," Global Economic Review, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(3), pages 363-378.
  2. Zhai, Fan & Hertel, Thomas W., 2009. "Economic and Poverty Impacts of Agricultural, Trade and Factor Market Reforms in China," Agricultural Distortions Working Paper, World Bank 52787, World Bank.
  3. Wang, Xinxin & Chen, Kevin & Huang, Zuhui, 2013. "The Impact of China's Demographic Transition on Economic Growth and Income Distribution: CGE Modeling with Top-Down Micro-Simulation," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 151276, Agricultural and Applied Economics Association.
  4. Hertel, Thomas W. & Winters, L. Alan, 2005. "Poverty impacts of a WTO agreement : synthesis and overview," Policy Research Working Paper Series 3757, The World Bank.
  5. Marie-Hélène Cloutier & John Cockburn & Bernard Decaluwé, 2008. "Education and Poverty in Vietnam: a Computable General Equilibrium Analysis," Cahiers de recherche, CIRPEE 0804, CIRPEE.
  6. Kenneth Reinert, 2007. "The European Union, the Doha Round, and Asia," Asia Europe Journal, Springer, Springer, vol. 5(3), pages 317-330, September.
  7. He, Y.X. & Zhang, S.L. & Yang, L.Y. & Wang, Y.J. & Wang, J., 2010. "Economic analysis of coal price-electricity price adjustment in China based on the CGE model," Energy Policy, Elsevier, Elsevier, vol. 38(11), pages 6629-6637, November.

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