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The impact of China’s WTO accession on trade and economic relations across the Taiwan Strait

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  • Zhi Wang

Abstract

This paper evaluates the impact of China’s World Trade Organisation (WTO) accession on trade and economic relations across the Taiwan Strait and its implications for the rest of the world by a recursive dynamic, 17‐region, 25‐sector computable general equilibrium (CGE) model according to actual market access commitments that China and Taiwan have made to date. The simulation results show that both China and Taiwan will substantially benefit from their WTO memberships, and their economic interdependence and their dependence within the rest of the world will further deepen. The rest of the world may also benefit because of the expansion of world trade and improvement of their international terms of trade, but some developing countries with an endowment structure similar to China, like those in South America and Southeast Asia, may experience keener competition in labour‐intensive exports and lower prices for their products. JEL classification: F1, F02, C68, P52.

Suggested Citation

  • Zhi Wang, 2001. "The impact of China’s WTO accession on trade and economic relations across the Taiwan Strait," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 743-785, November.
    • Handle: RePEc:bla:etrans:v:9:y:2001:i:3:p:743-785
    DOI: 10.1111/1468-0351.00098
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    Cited by:

    1. Jordán, Gyula, 2005. "Egyoldalú vagy kölcsönös függés?. Tajvan és a Kínai Népköztársaság gazdasági kapcsolatai [Unilateral or mutual dependence?. The economic relations of Taiwan and the Peoples Republic of China]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 163-183.
    2. Wei Hu & Yuejing Ge & Zhiding Hu & Shuai Ye & Feng Yang & Haining Jiang & Kun Hou & Yun Deng, 2022. "Geo-Economic Linkages between China and the Countries along the 21st-Century Maritime Silk Road and Their Types," IJERPH, MDPI, vol. 19(19), pages 1-28, October.
    3. Yongzheng Yang, 2006. "China's Integration into the World Economy: implications for developing countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 20(1), pages 40-56, May.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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