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Effects of Reducing Tariffs and Endogenous Productivity Growth

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  • Yin Hua Mai

Abstract

In this study, the effects of China's WTO commitments of reducing tariff and non-tariff barriers are analysed using a Computable General Equilibrium (CGE) model of China. In particular, this study draws the attention of policy makers to a different regional employment outcome when trade-liberalisation induced productivity improvements are taken into account. Trade-liberalisation induced productivity improvements occur when local producers survive import competition by seeking (most likely importing) input-saving technologies and production practice. Such endogenous productivity improvements, based on empirical estimates, are endogenously represented in the model.

Suggested Citation

  • Yin Hua Mai, 2003. "Effects of Reducing Tariffs and Endogenous Productivity Growth," Centre of Policy Studies/IMPACT Centre Working Papers g-139, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-139
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    References listed on IDEAS

    as
    1. Mai, Yinhua & Horridge, Mark & Perkins, Frances, 2003. "Estimating the Effects of China’s Accession to the World Trade Organisation," Conference papers 331081, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    Cited by:

    1. repec:zbw:bofitp:2005_018 is not listed on IDEAS
    2. Yinhua Mai, 2006. "Removing border protection on wheat and rice: effects on rural income and food securities in China," Centre of Policy Studies/IMPACT Centre Working Papers g-160, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Wim Naudé & Riaan Rossouw, 2011. "Export diversification and economic performance: evidence from Brazil, China, India and South Africa," Economic Change and Restructuring, Springer, vol. 44(1), pages 99-134, April.
    4. Mai, Yinhua & Horridge, Mark & Perkins, Frances, 2003. "Estimating the Effects of China’s Accession to the World Trade Organisation," Conference papers 331081, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Yinhua Mai & Philip Adams & Mingtai Fan & Ronglin Li & Zhaoyang Zheng, 2005. "Modelling the Potential Benefits of an Australia-China free Trade Agreement," Centre of Policy Studies/IMPACT Centre Working Papers g-153, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Wang, Jiao & Mayes, David & Wan, Guanghua, 2005. "Effects of WTO membership on income distribution and labour movement in China : A CGE analysis," BOFIT Discussion Papers 18/2005, Bank of Finland, Institute for Economies in Transition.

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    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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