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China's Gains from WTO Accession: Imports versus Exports

Author

Listed:
  • Ting-Wei Lai
  • Raymond Riezman
  • Ping Wang

Abstract

We examine the gains from Chinese accession to the WTO. Using Arkolakis, Costinot, and Rodríguez-Clare (2012) we provide a new quantitative welfare measure by dividing the manufacturing sector into import and export sub-sectors. We then evaluate how the increased openness caused by China’s accession to the WTO effects the importing and exporting sectors. We find surprisingly, that the gains to the import sector are larger than the gains to the export sector. Moreover, the size and the dynamic pattern of such gains are different across sectors.

Suggested Citation

  • Ting-Wei Lai & Raymond Riezman & Ping Wang, 2015. "China's Gains from WTO Accession: Imports versus Exports," CESifo Working Paper Series 5668, CESifo.
    • Handle: RePEc:ces:ceswps:_5668
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    References listed on IDEAS

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    1. Christian Broda & David E. Weinstein, 2006. "Globalization and the Gains From Variety," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 541-585.
    2. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    3. Costas Arkolakis & Arnaud Costinot & Andres Rodriguez-Clare, 2012. "New Trade Models, Same Old Gains?," American Economic Review, American Economic Association, vol. 102(1), pages 94-130, February.
    4. Ossa, Ralph, 2015. "Why trade matters after all," Journal of International Economics, Elsevier, vol. 97(2), pages 266-277.
    5. Lorenzo Caliendo & Fernando Parro, 2015. "Estimates of the Trade and Welfare Effects of NAFTA," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(1), pages 1-44.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    gains from trade; import substitution; export promotion;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

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