Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China

Joseph Francois and Dean Spinanger ()
Additional contact information
Dean Spinanger: Institute for World Economics, Kiel

No 04-049/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This paper is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China’s motor vehicle sector. The analysis is conducted using a 23 sector–25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry.

Keywords: China Accession to WTO; Automobile Sector (search for similar items in EconPapers)
JEL-codes: F13 F14 F17 (search for similar items in EconPapers)
Date: 2004-05-04
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China (2004)
Working Paper: Regulated Efficiency, World Trade Organization Accession and the Motor Vehicle Sector in China (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20040049

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