WTO ACCESSION AND CHINA's DOMESTIC REGIONAL LIBERALIZATION: A THEORETICAL ANALYSIS

Jie Li and Anming Zhang

Pacific Economic Review, 2003, vol. 8, issue 2, 127-141

Abstract: Abstract. This paper examines the implications of China's WTO accession for its domestic regional liberalization. We find first that, without WTO membership, regional liberalization might create a trade diversion that benefited only low‐protection regions while harming high‐protection regions, and it might or might not benefit the country as a whole. Second, we find that WTO entry will benefit the whole country, whether there is regional liberalization or not. Third, we find that WTO entry will facilitate domestic regional liberalization.

Date: 2003
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