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Comparing Alternative China and US Arrangements with CPTPP

Chunding Li, Xin Lin and John Whalley

No 26877, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper builds a 29-country numerical general equilibrium model with inside money and trade cost to simulate and compare the effects of China and the US taking part in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which is a high standard mega regional trade agreement. Comparison results show that China will benefit CPTPP member countries more than the US on trade, GDP, and manufacturing employment. China’s entering the CPTPP can also benefit most non-member countries on GDP and manufacturing employment. By joining, the US will benefit the whole world more, as the US economic scale is larger than that of China. Our simulation results reveal that China will be more welcomed to the CPTPP by member countries.

JEL-codes: C68 F47 F53 (search for similar items in EconPapers)
Date: 2020-03
New Economics Papers: this item is included in nep-cna and nep-int
Note: ITI
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