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Evaluating Accession to WTO by China and Chinese Taipei

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  • Ianchovichina, Elena
  • Martin, Will

Abstract

China is the biggest beneficiary of WTO accession, followed by Taiwan, China and the industrialized and newly industrialized economies. Developing economies competing with China in third market may lose, but their losses are relatively small. China has already benefited from reforms between 1995 and 2001 (US$26.7 billion) and additional reforms will lead to a much smaller gain of around $US6 billion. However, accession will have important distributional consequences for China. Wages of skilled workers and wages of unskilled non-farm workers will rise in real terms and relative to wages of farmers. Reduction in agricultural protection lowers the attractiveness of farming implying that some farmers may be hurt by WTO accession. To help these vulnerable groups the Chinese government could fine tune its current policies. Possible policy changes include increased education spending and reform (abolition) of the hukou system.

Suggested Citation

  • Ianchovichina, Elena & Martin, Will, 2002. "Evaluating Accession to WTO by China and Chinese Taipei," Conference papers 331052, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331052
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    References listed on IDEAS

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    1. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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