Quantifying the Impact of Trade Liberalization

Mingtai Fan

Chinese Economy, 2010, vol. 43, issue 3, 68-76

Abstract: China joined the World Trade Organization (WTO) in 2001 and has since taken major steps to promote trade liberalization. It participates in free trade agreements (FTAs) with ASEAN, New Zealand, and Costa Rica and is negotiating with Australia for a comprehensive Sino-Australian FTA. The economic impact of FTAs can be quantified by applying economic models for trade policy analysis. Quantitative economic modeling for trade policy analysis over the past twelve years is briefly examined using four examples. The focus is on the infrastructural challenges in quantitative economic modeling for trade policy analysis in which Chinese policymakers seem most interested, namely disaggregated, consistent, and timely data, robust parameterization, policy timelines, and relevance.

Date: 2010
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