Quantifying the Spillovers from China Rebalancing Using a Multi-Sector Ricardian Trade Model

Rui Mano

No 2016/219, IMF Working Papers from International Monetary Fund

Abstract: This paper assesses the spillovers from different facets of China rebalancing using a calibrated Ricardian trade model that includes 41 economies, each consisting of 34 sectors. We find that China’s move up the value chain in particular has the potential for significant spillovers – on the one hand, adversely affecting industrialized economies heavily involved in the Asia value chain, while at the same time generating positive spillovers to lower and middle income countries. The model’s strength lies in endogenously capturing production value chains and international trade of goods across sectors.

Keywords: WP; value chain; Spillovers; China rebalancing; trade channel; sectoral trade; export growth pattern; exports contract; trade model; goods trade channel; production value chains; export share; Income; Exports; Productivity; Consumption; Asia and Pacific (search for similar items in EconPapers)
Pages: 38
Date: 2016-11-15
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Citations: View citations in EconPapers (1)

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