Effects of Reducing Tariffs and Endogenous Productivity Growth

Yinhua Mai

No 331185, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: In this study, the effects of China’s WTO commitments of reducing tariff and nontariff 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.

Keywords: International Relations/Trade; Productivity Analysis (search for similar items in EconPapers)
Pages: 15
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331185

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