The Impact of RCEP on Chinese Regional Economy from Global Value Chains Perspective

Lingling Zhou, Chen Pan, Jianwu He and Shantong Li

No 333306, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) that is has been established in 2020. RCEP will bring great benefits for China. However, China is a country with a vast territory and there are great differences of natural resource endowment and geographic location between the regions, as well as the economic. Therefore, first of all we investigate the potential effect of RCEP with a focus on China’s regional economy using GTAP model. Furthermore, we apply soft connection between the global computable general equilibrium model and Chinese regional input-output model to assess the potential impacts on China’s regional economy. Finally, we analyze the impact of RCEP on China’s regional industry with different global value chain participation. In general, RCEP would have a significant economic creation effect for members. Our simulation results suggest that RCEP would encourage significant increases for its members. RCEP would promote the economy of most provinces. RCEP has a greater promotion effect on the economy of coastal areas. In addition, the indirect impact of RCEP on different industries is relatively strong.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333306

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