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Dual Labor Markets and Trade Reform in China

Author

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  • Piyush Tiwari
  • Tetsu Kawakami
  • Masayuki Doi

Abstract

This paper specifically models rigidities in the labor market in China and analyzes the effect of labor market liberalization on economic growth using a computable general equilibrium (CGE) model. Our results indicate that labor market reforms are essential to the realization of significant gains from China's accession in November 2001 to the World Trade Organization (WTO). In the absence of labor market reform, the gains to accession to the WTO are estimated to be minimal.

Suggested Citation

  • Piyush Tiwari & Tetsu Kawakami & Masayuki Doi, 2002. "Dual Labor Markets and Trade Reform in China," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(2), pages 101-113.
    • Handle: RePEc:taf:jpolrf:v:5:y:2002:i:2:p:101-113
    DOI: 10.1080/13841280214093
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    References listed on IDEAS

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    1. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-782, July.
    2. Jeffrey Sachs & Xiaokai Yang & Dingsheng Zhang, 2005. "Globalization, Dual Economy, And Economic Development," World Scientific Book Chapters, in: An Inframarginal Approach To Trade Theory, chapter 16, pages 349-382, World Scientific Publishing Co. Pte. Ltd..
    3. Jones, Ronald W, 1971. "Distortions in Factor Markets and the General Equilibrium Model of Production," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 437-459, May-June.
    4. Masayuki Doi & Piyush Tiwari & Tetsu Kawakami, 2002. "Trade and Factor Market Reforms in China," LABOUR, CEIS, vol. 16(3), pages 537-555, September.
    5. Tao Yang, Dennis, 1997. "China's land arrangements and rural labor mobility," China Economic Review, Elsevier, vol. 8(2), pages 101-115.
    6. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
    7. Bhattacharyya, Arunava & Parker, Elliott, 1999. "Labor productivity and migration in Chinese agriculture A stochastic frontier approach," China Economic Review, Elsevier, vol. 10(1), pages 59-74.
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    Cited by:

    1. Claustre Bajona & David Kelly, 2006. "Free trade agreements and the environment with pre-existing subsidies," 2006 Meeting Papers 306, Society for Economic Dynamics.
    2. Abbas Khandan & Masoud Nili, 2014. "Government interventions and the size of the informal economy. The case of Iran (1971-2007)," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 17(1), pages 71-90, March.
    3. Bajona, Claustre & Kelly, David L., 2012. "Trade and the environment with pre-existing subsidies: A dynamic general equilibrium analysis," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 253-278.

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