Impacts of the Doha Development Agenda on People's Republic of China: The Role of Complementary Education Reforms

Fan Zhai and Thomas Hertel

No 73, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This paper evaluates the poverty impact of mutlilateral trade liberalization under the Doha Round WTO negotiations, using a household-disaggregated, recursive dynamic computable general equilibrium (CGE) model of the People's Republic of China (PRC). It explores how trade liberalization interacts with the reform of improving rural education. Simulation results show that multilateral trade reforms reduce poverty in the PRC, with biggest reductions occurring in rural areas due to higher prices for farm products. Furthermore, the complementary reform on rural education generates substantial gains for the PRC's economy by boosting rural incomes and reducing the incidence of rural poverty significantly.

Keywords: Doha Round; household-disaggregated model; multilateral trade liberalization; poverty impact; rural education reform (search for similar items in EconPapers)
JEL-codes: F13 F17 I24 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2005-10-01
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