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Effects of Reducing Tariffs and Endogenous Productivity Growth

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  • Mai, Yinhua

Abstract

In this study, the effects of China’s WTO commitments of reducing tariff and nontariff barriers are analysed using a Computable General Equilibrium (CGE) model of China. In particular, this study draws the attention of policy makers to a different regional employment outcome when trade-liberalisation induced productivity improvements are taken into account. Trade-liberalisation induced productivity improvements occur when local producers survive import competition by seeking (most likely importing) input-saving technologies and production practice. Such endogenous productivity improvements, based on empirical estimates, are endogenously represented in the model.

Suggested Citation

  • Mai, Yinhua, 2004. "Effects of Reducing Tariffs and Endogenous Productivity Growth," Conference papers 331185, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331185
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