Chinese accession to the WTO: Economic implications for China, other Asian and North American economies

Ghosh, Madanmohan; Rao, Someshwar

doi:10.1016/j.jpolmod.2010.03.003

Cited by 23 publications

(19 citation statements)

References 6 publications

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“…Their qualitative results strongly resemble the pattern we find for the WTO accession. Ghosh and Rao (2010) find a similar pattern in an evaluation study of China's WTO entry based on a CGE model and GTAP data. Those studies, as well as ours, complement micro-level evidence that has drawn a more pessimistic picture of the consequences of trading with China, particularly for the United States (see, e.g., Autor et al, 2013).…”

Section: Introductionsupporting

confidence: 59%

Where is the value added? Trade liberalization and production networks

Aichele

Heiland

2018

Journal of International Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Where is the Value Added? Trade Liberalization and Production Networks Abstract Fragmentation of the global value chain makes it difficult to assess the effects of trade liberalization on the global pattern of production. Gross bilateral trade ows no longer reveal a country's or a sector's value added contribution. Yet, it is value added that matters for employment and welfare. We derive a structural equation for value added trade ows and theorybased measures for production networks from a multi-sector gravity model with inter-sectoral linkages to analyze the effects of trade liberalization in the presence of globally fragmented value chains. We estimate the model's key parameters, calibrate it to the year 2000 using the World Input-Output Database, and perform a counterfactual analysis of China's WTO accession. We find that China's WTO entry accounts for about 45% of the decrease in China's value added exports to exports ratio and for about 7% of the decline in this figure on the world level as observed between 2000 and 2007. Furthermore, our results imply that China's WTO accession was the driving force behind the strengthening of production networks with its neighbors and led to significant welfare gains for China, Australia, and the proximate Asian economies. Terms of use: Documents inJEL-Codes: F130, F140, F170.

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Section: Introductionsupporting

confidence: 59%

Where is the value added? Trade liberalization and production networks

Aichele

Heiland

2018

Journal of International Economics

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“…For example, IMF () simulations show that China's rapid growth in output and trade has a positive effect on global welfare, but such an effect is relatively small across different regions (from 0.1 to 0.7%). This finding has been confirmed by Ghosh and Rao (), who have demonstrated that the overall effect of China's entry to the WTO, together with the removal of MFA quotas, on other countries’ real GDP is positive yet quantitatively small. For example, the real GDP of Canada, the United States and the EU will only increase by 0.06, 0.02 and 0.01%, respectively.…”

Section: Global Influencesupporting

confidence: 53%

“…Developing countries in South‐East Asia, including Indonesia, Vietnam, Malaysia, Philippines, and Thailand, all suffer losses in textile output (US$61m to US$970m) and apparel output (US$768m to US$1337m). However, according to calibration and simulations in Ghosh and Rao (), in which the removal of trade barriers in textile and apparel industries has been considered along with China's entry to the WTO, Asian countries have large gains from textiles and apparel. They also single out India in their study and reveal that in textiles, India gains 19.0, 9.9 and 7.5% in exports, imports and value added, respectively, whereas the rest of Asia gains 41.5, 21.9 and 19.3%, respectively.…”

Section: Asian Countries/economiesmentioning

confidence: 99%

China's Global Influence: A Survey through the Lens of International Trade

Qiu

Zhan

2016

Pacific Economic Review

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Abstract. One of the most impressive changes in the global economy in the past half-century has been China's high and sustained growth and its integration into the global economy. This phenomenal change not only brings huge benefits to the Chinese people, but also exerts a tremendous influence on the rest of the world. How large is China's influence on the global economy? How are various countries/regions affected differently? How are various industries in a country affected differently? Answering these questions is not simple. In this paper, we review the recent literature that attempts to answer these questions. The findings of the survey conducted in this study aim to provide a complete picture of China's global influence and to identify issues that require further analysis.

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“…Our work is also related to the Computable General Equilibrium (CGE) assessments of trade integration of the major emerging markets: see, e.g., Francois and Wignaraja (2008) and Ghosh and Rao (2010) for China, and Baldwin, Francois and Portes (1997), Brown, Deardorff, Djankov and Stern (1997), Hertel, Brockmeier and Swaminathan (1997), and Baourakis, Lakatos and Xepapadeas (2008) for Eastern Europe. Unlike the traditional CGE approach, our quantitative framework is based on Eaton and Kortum (2002)'s Ricardian model of trade with endogenous specialization both within and across sectors, which enables us to relate our findings to comparative advantage.…”

Section: Introductionmentioning

confidence: 99%

The Global Labor Market Impact of Emerging Giants: A Quantitative Assessment

Levchenko¹,

Zhang²

2013

IMF Econ Rev

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract This paper investigates both aggregate and distributional impacts of the trade integration of China, India, and Central and Eastern Europe in a quantitative multi-country multi-sector model, comparing outcomes with and without factor market frictions. Under perfect withincountry factor mobility, the gains to the rest of the world from trade integration of emerging giants are 0.37%, ranging from −0.37% for Honduras to 2.28% for Sri Lanka. Reallocation of factors across sectors contributes relatively little to the aggregate gains, but has large distributional effects. The aggregate gains to the rest of the world are only 0.065 percentage points lower when neither capital nor labor can move across sectors within a country. On the other hand, the distributional effects of the emerging giants' trade integration are an order of magnitude larger, with changes in real factor returns ranging from −5% to 5% across sectors in most countries. The workers and capital owners in emerging giants' comparative advantage sectors such as Textiles and Wearing Apparel experience greatest losses, while factor owners in Printing and Medical, Precision and Optical Instruments normally gain the most. Terms of use: Documents inJEL Classifications: F11, F15, F16

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Chinese accession to the WTO: Economic implications for China, other Asian and North American economies

Cited by 23 publications

References 6 publications

Where is the value added? Trade liberalization and production networks

Where is the value added? Trade liberalization and production networks

China's Global Influence: A Survey through the Lens of International Trade

The Global Labor Market Impact of Emerging Giants: A Quantitative Assessment

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