How Much Did China's WTO Accession Increase Economic Growth in Resource-Rich Countries?
We provide an estimate of China’s impact on the growth rate of resource-rich countries after its WTO accession on 11 December 2001. Our empirical approach follows the logic of the differences-in-differences estimator. In addition to temporal variation arising from the WTO accession, which we argue was exogenous to other countries’ growth trajectories, we exploit spatial variation arising from differences in natural resource wealth. This allows us to compare changes in economic growth in the post-accession period relative to the pre-accession period between countries that were able to benefit from the surge in demand for industrial commodities brought about by China’s WTO accession and countries that were less able to do so. We find that roughly one tenth of average annual post-accession growth in resource-rich countries was due to China’s increased appetite for commodities. We use this finding to inform the debate about what will happen to economic growth in resource-rich countries as China rebalances and its demand for commodities weakens.
|Date of creation:||03 Oct 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 65 50 32 33
Fax: 65 50 32 37
Web page: http://www.sdu.dk/ivoe
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vernon Henderson & Adam Storeygard & David N. Weil, 2009.
"Measuring Economic Growth from Outer Space,"
2009-8, Brown University, Department of Economics.
- Kahrl, Fredrich & Roland-Holst, David, 2008. "Energy and exports in China," China Economic Review, Elsevier, vol. 19(4), pages 649-658, December.
- Jian-Ye Wang, 2007. "What Drives Chinaâ€™s Growing Role in Africa?," IMF Working Papers 07/211, International Monetary Fund.
- Shafaeddin, S. M., 2004. "Is China's accession to WTO threatening exports of developing countries?," China Economic Review, Elsevier, vol. 15(2), pages 109-144, January.
- Vivek Arora & Athanasios Vamvakidis, 2011. "China's Economic Growth: International Spillovers," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 19(5), pages 31-46, 09.
- Michael Pettis, 2013. "The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy," Economics Books, Princeton University Press, edition 1, volume 1, number 9936.
- Shaun K. Roache, 2012. "China's Impacton World Commodity Markets," IMF Working Papers 12/115, International Monetary Fund.
- Robert J. Barro, 2003.
"Determinants of Economic Growth in a Panel of Countries,"
Annals of Economics and Finance,
Society for AEF, vol. 4(2), pages 231-274, November.
- Robert J. Barro, 2003. "Determinants of Economic Growth in a Panel of Countries," CEMA Working Papers 505, China Economics and Management Academy, Central University of Finance and Economics.
- Wong, Kar-yiu, 2003. "The impacts of China's WTO accession on the Southeast Asian economies: A theoretical analysis," China Economic Review, Elsevier, vol. 14(3), pages 208-226.
- Ianchovichina, Elena & Walmsley, Terrie, 2003.
"The impact of China's WTO accession on East Asia,"
Policy Research Working Paper Series
3109, The World Bank.
- Wang, Zhi, 2003. "WTO accession, the "Greater China" free-trade area, and economic integration across the Taiwan Strait," China Economic Review, Elsevier, vol. 14(3), pages 316-349.
- Ashvin Ahuja & Malhar Nabar, 2012. "Investment-Led Growth in China: Global Spillovers," IMF Working Papers 12/267, International Monetary Fund.
- IANCHOVICHINA Elena & WALMSLEY Terrie, .
"Impact of China’s WTO Accession on East Asia,"
- Paul Crompton & Yanrui Wu, 2004.
"Energy Consumption in China: Past Trends and Future Directions,"
Economics Discussion / Working Papers
04-22, The University of Western Australia, Department of Economics.
- Crompton, Paul & Wu, Yanrui, 2005. "Energy consumption in China: past trends and future directions," Energy Economics, Elsevier, vol. 27(1), pages 195-208, January.
- Thomas Barnebeck Andersen & Peter Sandholt Jensen, 2014.
"Is Africa's Recent Growth Sustainable?,"
International Economic Journal,
Taylor & Francis Journals, vol. 28(2), pages 207-223, June.
- Beirne, John & Beulen, Christian & Liu, Guy & Mirzaei, Ali, 2013. "Global oil prices and the impact of China," China Economic Review, Elsevier, vol. 27(C), pages 37-51.
- Marcus Scheiblecker & et al., 2003. "Austria's Economy in 2002: Another Year of Slow Growth," WIFO Monatsberichte (monthly reports), WIFO, vol. 76(4), pages 257-323, April.
- Zhao, Xingjun & Wu, Yanrui, 2007.
"Determinants of China's energy imports: An empirical analysis,"
Elsevier, vol. 35(8), pages 4235-4246, August.
- Xingjun Zhao & Yanrui Wu, 2007. "Determinants of China’s Energy Imports: An Empirical Analysis," Economics Discussion / Working Papers 07-03, The University of Western Australia, Department of Economics.
- McCleary, Rachel & Barro, Robert, 2003. "Religion and Economic Growth across Countries," Scholarly Articles 3708464, Harvard University Department of Economics.
- Roberts, Ivan & Rush, Anthony, 2012. "Understanding China's demand for resource imports," China Economic Review, Elsevier, vol. 23(3), pages 566-579.
- Robert J. Barro & Xavier Sala-i-Martin, 2003. "Economic Growth, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262025531, June.
- Laura N. Beny & Lisa D. Cook, 2009. "Metals or Management? Explaining Africa's Recent Economic Growth Performance," American Economic Review, American Economic Association, vol. 99(2), pages 268-74, May.
- Robert J. Barro & Rachel McCleary, 2003. "Religion and Economic Growth," NBER Working Papers 9682, National Bureau of Economic Research, Inc.
- Brendan Coates & Nghi Luu, 2012. "China's emergence in global commodity markets," Economic Roundup, The Treasury, Australian Government, issue 1, pages 1-30, May.
- Bilge Erten, 2012. "Super-cycles of commodity prices since the mid-ninteenth century," Working Papers 110, United Nations, Department of Economics and Social Affairs.
When requesting a correction, please mention this item's handle: RePEc:hhs:sdueko:2013_015. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lene Holbæk)
If references are entirely missing, you can add them using this form.