The Global Welfare Impact of China: Trade Integration and Technological Change

Andrei Levchenko, Julian di Giovanni and Jing Zhang

No 9683, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper evaluates the global welfare impact of China's trade integration and technological change in a multi-country quantitative Ricardian-Heckscher-Ohlin model. We simulate two alternative growth scenarios: a "balanced" one in which China's productivity grows at the same rate in each sector, and an "unbalanced" one in which China's comparative disadvantage sectors catch up disproportionately faster to the world productivity frontier. Contrary to a well-known conjecture (Samuelson 2004), the large majority of countries experience significantly larger welfare gains when China's productivity growth is biased towards its comparative disadvantage sectors. This finding is driven by the inherently multilateral nature of world trade.

Keywords: China; International trade; Productivity growth (search for similar items in EconPapers)
JEL-codes: F11 F43 O33 O47 (search for similar items in EconPapers)
Date: 2013-10
New Economics Papers: this item is included in nep-eff, nep-int and nep-tra
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: The Global Welfare Impact of China: Trade Integration and Technological Change (2014)
Working Paper: The global welfare impact of China: trade integration and technological change (2013)
Working Paper: The global welfare impact of China: Trade integration and technological change (2013)
Working Paper: The Global Welfare Impact of China: Trade Integration and Technological Change (2012)
Working Paper: The Global Welfare Impact of China: Trade Integration and Technological Change (2012)
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