IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v33y2005i1p67-77.html
   My bibliography  Save this article

A study of the impact of direct trade on Taiwan's fishery sector with special reference to the effect of China's WTO accession

Author

Listed:
  • Fu‐Sung Chiang

Abstract

After Taiwan became a member of the WTO in 2002, its tariff rates for fishery products decreased by an average of 35.5% from the level in 2001. Direct imports of fishery products from China would be allowed in 2004. These tariff reductions and the relaxation of import restrictions will have a strong effect on Taiwan's fishery sector. In this paper, we present an analysis of how fishery production, prices, input usage, and welfare distribution might react to trade liberalization. In addition to evaluating the overall impact of tariff reduction on Taiwan's fishery sector, we assess the effects of China's WTO accession on the Taiwanese market. We use a fishery sector equilibrium model in which 40 products and 68 fishing activities are identified. The model also includes an import–export subsector, a factor input subsector, and a supply–demand equilibrium condition to analyze the distributions of social welfare due to trade liberalization. Three simulations are conducted to investigate the impact of tariff reductions in 2004, 2 years after Taiwan has jointed the WTO. The results indicate that Taiwan's fishery sector will be adversely affected when it encounters the extremely low import prices of certain fishery products from China. The total production of the fishery sector and its value are predicted to decrease by 4.03% and 9.96%, respectively, in 2004. Aquaculture would suffer the heaviest loss with a 7.48% reduction in the production and a 19.23% reduction in its value. The demand for labor will decrease by 8.71%. The effect is most pronounced in aquaculture in which the demand for labor will go down by 11.40% and the wage rate will decline by 14.28%. To meet the challenge of globalization, the Taiwanese fishery industry will have to diversify, and improve its operational efficiency as well as production and distribution structures for a sustainable development.

Suggested Citation

  • Fu‐Sung Chiang, 2005. "A study of the impact of direct trade on Taiwan's fishery sector with special reference to the effect of China's WTO accession," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 67-77, July.
    • Handle: RePEc:bla:agecon:v:33:y:2005:i:1:p:67-77
    DOI: 10.1111/j.1574-0862.2005.00324.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1574-0862.2005.00324.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1574-0862.2005.00324.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alven H.S. Lam, 2000. "Republic of China (Taiwan)," American Journal of Economics and Sociology, Wiley Blackwell, vol. 59(5), pages 327-336, November.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pei‐Yu Chi & Ting‐Yu Chang & Kuo‐I Chang, 2022. "Evaluating the impact of preferential trade agreement on fishery imports: An application of difference‐in‐differences with matching method," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 90-124, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Itakura, Ken & Hertel, Thomas & Jeff Reimer, 2003. "The Contribution of Productivity Linkages to the General Equilibrium Analysis of Free Trade Agreements," GTAP Working Papers 1193, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    2. Ferreira, Pedro Cavalcanti & Galvao Jr., Antonio F. & Gomes, Fabio Augusto Reis & Pessoa, Samuel de Abreu, 2010. "The effects of external and internal shocks on total factor productivity," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(3), pages 298-309, August.
    3. Beverly Lapham & Hiroyuki Kasahara, 2005. "Import Protection as Export Destruction," 2005 Meeting Papers 528, Society for Economic Dynamics.
    4. Elhanan Helpman, 2010. "Labor Market Frictions as a Source of Comparative Advantage, with Implications for Unemployment and Inequality," NBER Working Papers 15764, National Bureau of Economic Research, Inc.
    5. Elhanan Helpman, 2014. "Foreign Trade and Investment: Firm-level Perspectives," Economica, London School of Economics and Political Science, vol. 81(321), pages 1-14, January.
    6. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    7. Eromenko, Igor, 2010. "Accession to the WTO. Computable General Equilibrium Analysis: the Case of Ukraine. Part I," MPRA Paper 67476, University Library of Munich, Germany.
    8. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    9. Ivanic, Maros & Martin, Will, 2010. "Promoting Global Agricultural Growth and Poverty Reduction," Conference papers 331944, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Ronald D. Sands & Katja Schumacher & Hannah Forster, 2014. "U.S. CO2 Mitigation in a Global Context: Welfare, Trade and Land Use," The Energy Journal, , vol. 35(1_suppl), pages 181-198, June.
    11. Marijke J.D. Bos & Gonzague Vannoorenberghe, 2019. "Imported input varieties and product innovation: Evidence from five developing countries," Review of International Economics, Wiley Blackwell, vol. 27(2), pages 520-548, May.
    12. Sergey Paltsev & John Reilly, 2007. "Long-Term Energy Scenarios for Asia," Energy and Environmental Modeling 2007 24000047, EcoMod.
    13. Shekhar Hari Kumar & Aakriti Mathur, 2020. "A fistful of dollars: Transmission of global funding shocks to EMs," IHEID Working Papers 04-2020, Economics Section, The Graduate Institute of International Studies, revised 08 Feb 2021.
    14. Pierre Boulanger & Hasan Dudu & Emanuele Ferrari & George Philippidis, 2016. "Russian Roulette at the Trade Table: A Specific Factors CGE Analysis of an Agri-food Import Ban," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 272-291, June.
    15. Gruere, Guillaume P. & Mevel, Simon & Bouet, Antoine, 2007. "Genetically Modified Rice, International Trade, and First-Mover Advantage: The Case of India and China," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55032, International Agricultural Trade Research Consortium.
    16. Peterson, Everett B., 2004. "A Comparison of Marketing Margins Across Sectors, Users, and Regions," Conference papers 331224, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Jiang, Tingsong, 2003. "The Impact of China's WTO Accession on its Regional Economies," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 11.
    18. Fernandes, Ana M. & Isgut, Alberto E., 2005. "Learning-by-doing, learning-by-exporting, and productivity : evidence from Colombia," Policy Research Working Paper Series 3544, The World Bank.
    19. Knut Einar Rosendahl & Jon Strand, 2011. "Carbon Leakage from the Clean Development Mechanism," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 27-50.
    20. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.

    More about this item

    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:bla:agecon:v:33:y:2005:i:1:p:67-77. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.