IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/3109.html
   My bibliography  Save this paper

The impact of China's WTO accession on East Asia

Author

Listed:
  • Ianchovichina, Elena
  • Walmsley, Terrie

Abstract

China's World Trade Organization (WTO) accession will have major implications for China and present both opportunities and challenges for East Asia. Ianchovichina and Walmsley assess the possible channels through which China's accession to the WTO could affect East Asia and quantify these effects using a dynamic computable general equilibrium model. China will be the biggest beneficiary of accession, followed by the industrial and newly industrializing economies (NIEs) in East Asia. But their benefits are small relative to the size of their economies and to the vigorous growth projected to occur in the region over the next 10 years. By contrast, developing countries in East Asia are expected to incur small declines in real GDP and welfare as a result of China's accession, mainly because with the elimination of quotas on Chinese textile and apparel exports to industrial countries China will become a formidable competitor in areas in which these countries have comparative advantage. With WTO accession China will increase its demand for petrochemicals, electronics, machinery, and equipment from Japan and the NIEs, and farm, timber, energy products, and other manufactures from the developing countries in East Asia. New foreign investment is likely to flow into these expanding sectors. The overall impact on foreign investment is likely to be positive in the NIEs, but negative for the less developed East Asian countries as a result of the contraction of these economies'textile and apparel sector. As China becomes a more efficient supplier of services or a more efficient producer of high-end manufactures, its comparative advantage will shift into higher-end products. This is good news for the poor developing economies in East Asia, but it implies that the impact of China's WTO accession on the NIEs may change to include heightened competition in global markets.

Suggested Citation

  • Ianchovichina, Elena & Walmsley, Terrie, 2003. "The impact of China's WTO accession on East Asia," Policy Research Working Paper Series 3109, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3109
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/08/23/000094946_03081404011049/Rendered/PDF/multi0page.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Will Martin & Elena Ianchovichina, 2001. "Implications of China's Accession to the World Trade Organisation for China and the WTO," The World Economy, Wiley Blackwell, vol. 24(9), pages 1205-1219, September.
    2. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    3. Jikun Huang & Scott Rozelle & Min Chang, 2004. "Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 59-84.
    4. Joseph F. Francois & Dean Spinanger, 2004. "Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China," World Bank Economic Review, World Bank Group, vol. 18(1), pages 85-104.
    5. repec:wsi:wschap:9789812701350_0018 is not listed on IDEAS
    6. Elena Ianchovichina & Terrie Walmsley, 2005. "Impact of China's WTO Accession on East Asia," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 261-277, April.
    7. Terrie L. Walmsley & Thomas W. Hertel, 2001. "China's Accession to the WTO: Timing is Everything," The World Economy, Wiley Blackwell, vol. 24(8), pages 1019-1049, September.
    8. Ianchovichina, Elena, 2001. "Trade Liberalization in China’s Accession to WTO," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 421-445.
    9. Will Martin, 1993. "The Fallacy of Composition and Developing Country Exports of Manufactures," The World Economy, Wiley Blackwell, vol. 16(2), pages 159-172, March.
    10. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685.
    11. Sebastián Claro, 2002. "Tariff and FDI Liberalization: What to Expect from China's Entry into the WTO?," Documentos de Trabajo 209, Instituto de Economia. Pontificia Universidad Católica de Chile..
    12. Keith E. Maskus, 1993. "Intellectual property rights and the Uruguay Round," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 10-25.
    13. John Gilbert & Thomas Wahl, 2002. "Applied General Equilibrium Assessments of Trade Libereralisation in China," The World Economy, Wiley Blackwell, vol. 25(5), pages 697-731, May.
    14. Warwick J. McKibbin & K. K. Tang, 2000. "Trade and Financial Reform in China: Impacts on the World Economy," The World Economy, Wiley Blackwell, vol. 23(8), pages 979-1003, August.
    15. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters,in: Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523 World Scientific Publishing Co. Pte. Ltd..
    16. Elena Ianchovichina & Will Martin, 2004. "Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 3-27.
    17. Ianchovichina, Elena, 2003. "GTAP-DD: A Model for Analyzing Trade Reforms in the Presence of Duty Drawbacks," GTAP Technical Papers 1192, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    18. Terrie L. Walmsley & Thomas W. Hertel & Elena Ianchovichina, 2006. "Assessing The Impact Of China'S Wto Accession On Investment," Pacific Economic Review, Wiley Blackwell, vol. 11(3), pages 315-339, October.
    19. Finger, Michael J. & Schuler, Philip, 1999. "Implementation of Ururguay Round commitments : the development challenge," Policy Research Working Paper Series 2215, The World Bank.
    20. Dean Spinanger, 1999. "Textiles Beyond the MFA Phase-Out," The World Economy, Wiley Blackwell, vol. 22(4), pages 455-476, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Environmental Economics&Policies; Economic Theory&Research; International Terrorism&Counterterrorism; Payment Systems&Infrastructure; Labor Policies; Economic Theory&Research; Environmental Economics&Policies; World Trade Organization; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Trade and Regional Integration;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3109. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.