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China and Taiwan access to the World Trade Organization: implications for U.S. agriculture and trade

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  • Zhi Wang

Abstract

This paper investigates the impact of China's and Taiwan's accession to the World Trade Organization (WTO) on U.S. and world agricultural trade by means of a 12‐region, 14‐sector Computable General Equilibrium model for world trade and production. The simulation results show that integrating China and Taiwan into the global trading system could induce more competition on labor‐intensive Products and reduce their prices. It could drive up the demand for capital and skill‐intensive manufactured goods, thus further improving industrial countries' terms of trade. The expansion of labor‐intensive sectors in China could also induce contraction in agricultural exports from China and increase its net agricultural imports by as much as US$9 billion annually, causing food and agricultural exports from other regions to increase. Total U.S. food and agricultural exports could increase by about US$2.4 billion annually, with the non‐grain crop sectors gaining the most. The biggest winner from China's WTO accession is China itself. WTO membership could bring a net welfare gain of about US$30 billion a year for China, a substantial benefit compared with the gains for the USA (US$8.5 billion).

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  • Zhi Wang, 1997. "China and Taiwan access to the World Trade Organization: implications for U.S. agriculture and trade," Agricultural Economics, International Association of Agricultural Economists, vol. 17(2-3), pages 239-264, December.
    • Handle: RePEc:bla:agecon:v:17:y:1997:i:2-3:p:239-264
    DOI: 10.1111/j.1574-0862.1997.tb00477.x
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    1. Lewis, Jeffrey D. & Robinson, Sherman & Wang, Zhi, 1995. "Beyond the Uruguay Round: The implications of an Asian free trade area," China Economic Review, Elsevier, vol. 6(1), pages 35-90.
    2. Wang, Zhi, 1997. "The Impact of China and Taiwan Joining the World Trade Organization on U.S. and World Agricultural Trade: A Computable General Equilibrium Analysis," Technical Bulletins 184382, United States Department of Agriculture, Economic Research Service.
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    6. Wang, Zhi, 1997. "China and Taiwan access to the World Trade Organization: implications for U.S. agriculture and trade," Agricultural Economics, Blackwell, vol. 17(2-3), pages 239-264, December.
    7. Wang, Zhi & Slagle, James, 1996. "An object-oriented knowledge-based approach for formulating applied general equilibrium models," Journal of Economic Dynamics and Control, Elsevier, vol. 20(1-3), pages 209-236.
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    1. Sherman Robinson & Zhi Wang & Will Martin, 2002. "Capturing the Implications of Services Trade Liberalization," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 3-33.
    2. Gilbert, John & Wahl, Thomas I., 2000. "Rural-Urban Migration, Labor Mobility And Agricultural Trade Liberalization In China," 2000 Annual meeting, July 30-August 2, Tampa, FL 21727, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Gould, Brian W. & Dong, Diansheng, 2004. "Product Quality And The Demand For Food: The Case Of Urban China," 2004 Annual meeting, August 1-4, Denver, CO 20010, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Carter, Colin A. & Li, Xianghong, 1999. "Economic Reform And The Changing Pattern Of China'S Agricultural Trade," Working Papers 11957, University of California, Davis, Department of Agricultural and Resource Economics.
    5. Yan Wang & Dianqing Xu & Zhi Wang & FanZhai, 2001. "Implicit pension debt, transition cost, options, and impact of China's pension reform : a computable general equilibrium analysis," Policy Research Working Paper Series 2555, The World Bank.
    6. Simon Xiaobin Zhao & Christopher S. P. Tong & Jiming Qiao, 2002. "China's WTO accession, state enterprise reform, and spatial economic restructuring," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(4), pages 413-433.
    7. Gilbert, John & Wahl, Thomas I., 2001. "China'S Accession To The Wto And Impacts On Livestock Trade And Production Patterns," 2001: International Trade in Livestock Products Symposium, January 2001, Auckland, New Zealand 14540, International Agricultural Trade Research Consortium.
    8. Warwick J. McKibbin & K. K. Tang, 2000. "Trade and Financial Reform in China: Impacts on the World Economy," The World Economy, Wiley Blackwell, vol. 23(8), pages 979-1003, August.
    9. Nguyen, Huong, 2016. "China’s Agricultural Exports and their Effects on other Exporters," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235901, Agricultural and Applied Economics Association.
    10. Wang, Zhi, 2003. "The impact of China's WTO accession on patterns of world trade," Journal of Policy Modeling, Elsevier, vol. 25(1), pages 1-41, January.
    11. Wang, Zhi, 1997. "China and Taiwan access to the World Trade Organization: implications for U.S. agriculture and trade," Agricultural Economics, Blackwell, vol. 17(2-3), pages 239-264, December.
    12. Jose Tongzon, 2001. "China's membership in the World Trade Organization (WTO) and the exports of the developing economies of East Asia: a computable general equilibrium approach," Applied Economics, Taylor & Francis Journals, vol. 33(15), pages 1943-1959.
    13. Jörg Mayer, 2002. "The Fallacy of Composition: A Review of the Literature," The World Economy, Wiley Blackwell, vol. 25(6), pages 875-894, June.
    14. WEI, Shang-Jin & Liu, Ligang & Wang, Zhi & Woo, Wing T., 2000. "The China money puzzle: will devaluation of the yuan help or hurt the Hong Kong dollar?," China Economic Review, Elsevier, vol. 11(2), pages 171-188, December.
    15. Wang, Zhi & Zhai, Fan, 1998. "Tariff Reduction, Tax Replacement, and Implications for Income Distribution in China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 358-387, June.
    16. Jose L. Tongzon, 2002. "The Economies of Southeast Asia, Second Edition," Books, Edward Elgar Publishing, number 2029.
    17. Pan, Suwen & Welch, Mark & Mohanty, Samarendu & Fadiga, Mohamadou L. & Ethridge, Don E., 2005. "Assessing the Impacts of the Chinese TRQ System and U.S. Subsidies on the World Cotton Market," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-16.
    18. Zhi Wang & Bill Coyle, 2002. "APEC Open Regionalism and its Impact on the World Economy: A Computable General Equilibrium Analysis," The World Economy, Wiley Blackwell, vol. 25(4), pages 563-589, April.
    19. Unknown, 1998. "Regional Trade Agreements and U.S. Agriculture," Agricultural Economic Reports 33979, United States Department of Agriculture, Economic Research Service.
    20. Alpay, Savas & Mahmud, Syed, 2002. "Economic Growth and Environmental Quality: A Non-Parametric Kernel Estimation of the Environmental Kuznets Curve," Conference papers 330995, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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