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Dual Labor Markets and Trade Reform in China

Piyush Tiwari, Tetsu Kawakami and Masayuki Doi

Journal of Economic Policy Reform, 2002, vol. 5, issue 2, 101-113

Abstract: This paper specifically models rigidities in the labor market in China and analyzes the effect of labor market liberalization on economic growth using a computable general equilibrium (CGE) model. Our results indicate that labor market reforms are essential to the realization of significant gains from China's accession in November 2001 to the World Trade Organization (WTO). In the absence of labor market reform, the gains to accession to the WTO are estimated to be minimal.

Date: 2002
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DOI: 10.1080/13841280214093

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