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Assessing The Impact Of China'S Wto Accession On Investment

Author

Listed:
  • Terrie L. Walmsley
  • Thomas W. Hertel
  • Elena Ianchovichina

Abstract

After a boom in foreign direct investment (FDI) in China in the early 1990s, FDI slowed in the late 1990s. More recently, with China's accession to the World Trade Organization (WTO) a reality, FDI has once again picked up. This paper explores the linkage between WTO accession and investment in China. We find that investment and capital stocks increase substantially. Moreover, foreign ownership of Chinese assets doubles by 2020. Central to this increase is the expected catch-up in the productivity of the services sectors driven by reforms. These estimates are far larger than those predicted by earlier studies, which ignored the reforms affecting Chinese services sectors, and abstracted from international capital mobility. Copyright 2006 Blackwell Publishing Ltd

Suggested Citation

  • Terrie L. Walmsley & Thomas W. Hertel & Elena Ianchovichina, 2006. "Assessing The Impact Of China'S Wto Accession On Investment," Pacific Economic Review, Wiley Blackwell, vol. 11(3), pages 315-339, October.
  • Handle: RePEc:bla:pacecr:v:11:y:2006:i:3:p:315-339
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    References listed on IDEAS

    as
    1. Ianchovichina, Elena, 2002. "Trade policy analysis in the presence of duty drawbacks," Policy Research Working Paper Series 3312, The World Bank.
    2. Huff, Karen & Thomas W. Hertel, 2001. "Decomposing Welfare Changes in GTAP," GTAP Technical Papers 308, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
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    Citations

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    Cited by:

    1. Eromenko, Igor, 2010. "Accession to the WTO. Computable General Equilibrium Analysis: the Case of Ukraine. Part I," MPRA Paper 67476, University Library of Munich, Germany.
    2. Elena Ianchovichina & Terrie Walmsley, 2005. "Impact of China's WTO Accession on East Asia," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 261-277, April.
    3. Lucy Rees & Rod Tyers, 2004. "On the Robustness of Short Run Gains from Trade Reform," CEPR Discussion Papers 474, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    4. repec:ksp:journ5:v:4:y:2017:i:3:p:359-371 is not listed on IDEAS
    5. Yinhua Mai & Philip Adams & Mingtai Fan & Ronglin Li & Zhaoyang Zheng, 2005. "Modelling the Potential Benefits of an Australia-China free Trade Agreement," Centre of Policy Studies/IMPACT Centre Working Papers g-153, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Hertel, Thomas W., 2006. "A Survey of Findings on the Poverty Impacts of Agricultural Trade Liberalization," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 3(1).
    7. Dawood MAMOON, 2017. "Can micro credit schemes be introduced by formal banking sector?," Journal of Economics Library, KSP Journals, vol. 4(3), pages 359-371, September.
    8. Nguyen Khanh Doanh & Yoon Heo, 2009. "Impacts of Trade Liberalisation Commitments on the Vietnamese Economy: A CGE Approach," The World Economy, Wiley Blackwell, vol. 32(4), pages 606-628, April.
    9. Elena Ianchovichina & Maros Ivanic, 2016. "Economic Effects of the Syrian War and the Spread of the Islamic State on the Levant," The World Economy, Wiley Blackwell, vol. 39(10), pages 1584-1627, October.
    10. Ianchovichina,Elena & Devarajan,Shantayanan & Lakatos,Csilla, 2016. "Lifting economic sanctions on Iran : global effects and strategic responses," Policy Research Working Paper Series 7549, The World Bank.
    11. Xiao, Yangao & Tylecote, Andrew & Liu, Jiajia, 2013. "Why not greater catch-up by Chinese firms? The impact of IPR, corporate governance and technology intensity on late-comer strategies," Research Policy, Elsevier, vol. 42(3), pages 749-764.
    12. Boureima Sawadogo & Tegawende Juliette Nana & Maimouna Hama Natama & Fidèle Bama & Emma Tapsoba & Kassoum Zerbo, 2015. "Impact de l'expansion économique et commerciale de la Chine sur la croissance et l'emploi au Burkina Faso: une analyse en équilibre général calculable," Working Papers MPIA 2015-03, PEP-MPIA.
    13. repec:gam:jlands:v:6:y:2017:i:3:p:56-:d:109404 is not listed on IDEAS
    14. Eromenko, Igor, 2011. "Accession to the WTO. Computable General Equilibrium Analysis: the Case of Ukraine," MPRA Paper 67535, University Library of Munich, Germany.
    15. Lee, Hiro & Roland-Holst, David & van der Mensbrugghe, Dominique, 2002. "Emergent trilateralism in the Pacific Basin: How should China, Japan, and the United States respond to regional trade initiatives?," MPRA Paper 82606, University Library of Munich, Germany.
    16. Peter G. Mavromatis & George Verikios, 2008. "Does it Matter Whether Market Distortions are Evaluated Using Comparative-statics or Dynamics?," Centre of Policy Studies/IMPACT Centre Working Papers g-178, Victoria University, Centre of Policy Studies/IMPACT Centre.
    17. Elena Ianchovichina & Will Martin, 2004. "Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 3-27.
    18. Sabine Mage-Bertomeu, 2006. "Les modèles d'équilibre général appliqués à la politique commerciale : développements récents," Revue d'économie politique, Dalloz, vol. 116(3), pages 357-381.
    19. repec:spr:jecstr:v:6:y:2017:i:1:d:10.1186_s40008-017-0090-y is not listed on IDEAS
    20. 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.
    21. repec:dau:papers:123456789/1696 is not listed on IDEAS
    22. Elena IANCHOVICHINA & Will MARTIN, 2006. "Trade Impacts of China's World Trade Organization Accession," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(1), pages 45-65.

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