Effects of Reducing Tariffs and Endogenous Productivity Growth

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.

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Year of publication:	2003-12
Authors:	Mai, Yin Hua
Institutions:	Centre of Policy Studies and Impact Project (COPS), Victoria University

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Extent:	application/pdf text/html
Series:	Centre of Policy Studies/IMPACT Centre Working Papers.
Type of publication:	Book / Working Paper
Classification:	D58 - Computable and Other Applied General Equilibrium Models ; F14 - Country and Industry Studies of Trade ; O53 - Asia including Middle East
Source:	RePEc - Research Papers in Economics