China’s welfare gain from involved mega-regional trade agreements

Zhifang Guo and Chunding Li ()

Applied Economics Letters, 2019, vol. 26, issue 8, 650-656

Abstract: This article draw upon a 29-country numerical general equilibrium model with trade cost and endogenous trade imbalance to simulate China’s welfare gain from negotiating mega-regional trade agreements (mega-RTAs). We introduce elasticity of substitution distributions instead of normally definite values in the model and generate a distribution of impact results ranging among some specific intervals, which injects a new kind of effect presentation style to existing literature. The results of our article reveal that China will gain from all undergoing negotiation mega-RTAs we mentioned in this article, comparatively Regional Comprehensive Economic Partnership will benefit China the most.

Date: 2019
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DOI: 10.1080/13504851.2018.1489106

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