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Effects of Reducing Tariffs and Endogenous Productivity Growth

  • Yin Hua Mai

In this study, the effects of China's WTO commitments of reducing tariff and non-tariff 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.

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Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-139.

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Date of creation: Dec 2003
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Handle: RePEc:cop:wpaper:g-139
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  1. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. Yin Hua Mai & Mark Horridge & Frances Perkins, 2003. "Estimating the effects of China's Accession to the World Trade Organisation," Centre of Policy Studies/IMPACT Centre Working Papers g-137, Victoria University, Centre of Policy Studies/IMPACT Centre.
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