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What Does A Free Trade Area Of The Asia-Pacific Mean To China

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  • Tingsong Jiang
  • Warwick McKibbin

Abstract

A Free Trade Area of the Asia-Pacific (FTAAP) has been proposed as a long-term prospect by the Asia-Pacific Economic Cooperation (APEC). This paper examines the impact of the FTAAP on the national and regional economies in China using a suite of general equilibrium models: APG-Cubed, a dynamic global model; GTAP, a static global model; and CERD, a static China model with regional dimension. The impact on the Chinese economy of the APFTA is also compared with those of other forms of FTAs such as the ASEAN-China FTA (ACFTA) and the East Asia FTA (EAFTA). China benefits from all three FTAs, and the eastern region gains the most. It is also found that China’s benefit increases along with the increase in coverage of the FTAs, that is, the APFTA has the biggest positive impact on the Chinese economy, among the three FTAs considered in this study. Sector-wise, textile, clothing and footwear sector gains the most from the FTAAP, while motor vehicle and parts sector loses the most.

Suggested Citation

  • Tingsong Jiang & Warwick McKibbin, 2008. "What Does A Free Trade Area Of The Asia-Pacific Mean To China," CAMA Working Papers 2008-10, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:camaaa:2008-10
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    File URL: https://cama.crawford.anu.edu.au/sites/default/files/publication/cama_crawford_anu_edu_au/2021-06/10_jiang_mckibbin_2008.pdf
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    References listed on IDEAS

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    1. McKibbin, Warwick J. & Wilcoxen, Peter J., 1998. "The theoretical and empirical structure of the G-Cubed model," Economic Modelling, Elsevier, vol. 16(1), pages 123-148, January.
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    Cited by:

    1. Lakatos, Csilla & Walmsley, Terrie, 2012. "Investment creation and diversion effects of the ASEAN–China free trade agreement," Economic Modelling, Elsevier, vol. 29(3), pages 766-779.
    2. Bergsten, C. Fred & Noland, Marcus & Schott, Jeffrey J., 2011. "The Free Trade Area Of The Asia-Pacific: A Constructive Approach To Multilateralizing Asian Regionalism," ADBI Working Papers 336, Asian Development Bank Institute.
    3. Noland, Marcus, 2009. "United States Economic Policy Toward Asia," MPRA Paper 15572, University Library of Munich, Germany.
    4. Woohyoung Kim, 2010. "A Study on the Feasibility of an FTAAP and Korea's Strategy," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 13(2), pages 281-302, June.
    5. Marcus NOLAND, 2009. "American Economic Relations with Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 4(2), pages 181-199, December.

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