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The Consequences of China's WTO Accession for Its Neighbors

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Author Info
Warwick J. McKibbin (Research School of Pacific and Asian Studies Australian National University Canberra, ACT 0200 Australia and The Brookings Institution 1775 Massachusetts Avenue, N.W. Washington, DC 20036 USA)
Wing Thye Woo (Economics Department University of California One Shields Avenue Davis, CA 95616, USA,)

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Abstract

Our simulations of a global macroeconomic model suggest that China's WTO accession could create significant welfare losses in the ASEAN-4 if foreign direct investment (FDI) is significantly redirected away from these countries toward China, and if the ASEAN-4 countries are unable to implement policies to make up for the slower rate of technological diffusion from the reduced FDI inflow. If the ASEAN-4 do not fall behind technologically, then they will be able to find lucrative niches within the lengthened international manufacturing production chains. The ASEAN-4 must therefore strengthen their abilities to absorb new foreign technologies quickly and to engage in indigenous technical innovations. Copyright (c) 2003 Center for International Development and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/153535103772624772
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Publisher Info
Article provided by MIT Press in its journal Asian Economic Papers.

Volume (Year): 2 (2003)
Issue (Month): 2 ()
Pages: 1-38
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Handle: RePEc:tpr:asiaec:v:2:y:2003:i:2:p:1-38

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References listed on IDEAS
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.:
  1. Warwick J. McKibbin & K. K. Tang, 2000. "Trade and Financial Reform in China: Impacts on the World Economy," The World Economy, Blackwell Publishing, vol. 23(8), pages 979-1003, 08. [Downloadable!] (restricted)
  2. McKibbin, Warwick J & Vines, David, 2000. "Modelling Reality: The Need for Both Inter-temporal Optimization and Stickiness in Models for Policy-Making," Oxford Review of Economic Policy, Oxford University Press, vol. 16(4), pages 106-37, Winter.
  3. Ianchovichina, Elena & Martin, Will, 2001. "Trade liberalization in China's accession to the World Trade Organization," Policy Research Working Paper Series 2623, The World Bank. [Downloadable!]
  4. McKibbin, W.J. & Wilcoxen, P.J., 1995. "The Theoretical and Empirical Structure of the G-Cubed Model," Papers 118, Brookings Institution - Working Papers.
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  5. Wing Thye Woo, 1999. "The Economics and Politics of Transition to an Open Market Economy: China," OECD Development Centre Working Papers 153, OECD, Development Centre. [Downloadable!]
  6. Arjan Lejour, 2001. "China and the WTO: The Impact on China and the World Economy," Trade Working Papers 207, East Asian Bureau of Economic Research. [Downloadable!]
  7. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1995-1), pages 1-118. [Downloadable!]
  8. Wing Thye Woo, . "Chinese Economic Growth: Sources And Prospects," Department of Economics 96-08, California Davis - Department of Economics. [Downloadable!]
  9. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers 1733, Harvard - Institute of Economic Research.
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(explanations, 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.)

  1. Benoît Mercereau, 2005. "FDI Flows to Asia: Did the Dragon Crowd Out the Tigers?," IMF Working Papers 05/189, International Monetary Fund. [Downloadable!]
  2. Matthieu Bussière & Bernd Schnatz, 2006. "Evaluating China’s integration in world trade with a gravity model based benchmark," Working Paper Series 693, European Central Bank. [Downloadable!]
    Other versions:
  3. Barry Eichengreen & Hui Tong, 2005. "Is China's FDI Coming at the Expense of Other Countries?," NBER Working Papers 11335, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Peter Drysdale & Xinpeng Xu, 2003. "Taiwans Role in the Economic Architecture of East Asia and the Pacific," Trade Working Papers 373, East Asian Bureau of Economic Research. [Downloadable!]
  5. Peter Drysadale, 2005. "Regional Cooperation in East Asia and FTA Strategies," Trade Working Papers 382, East Asian Bureau of Economic Research. [Downloadable!]
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