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Long-run Effects on China of APEC Trade Liberalisation

Philip Adams (), Mark Horridge (), Brian Parmenter and Xiao-Guang Zhang

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: Plans for APEC trade liberalisation include the elimination of all tariffs between member states. In this paper we use two computable general equilibrium models to examine the effects of these plans, focussing on China. Our modelling shows that liberalisation increases China's capital stock and real GDP. The implication for Chinese industries depend on the extent to which liberalisation exposes them to additional import competition. Industries strongly stimulated include Textiles and Communications Equipment. Transport Equipment is the most adversely affected. Chinese regional results follow from the industrial compositions of the regions, with Zhejiang the most favourably affected and Jilin the least.

Keywords: Computable General Equilibrium Models; Economic Integration (search for similar items in EconPapers)
JEL-codes: C68 F15 (search for similar items in EconPapers)
Date: 1998-10
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Published in Pacific Economic Review, Vol 5(1) 2000, pp. 15-47.

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