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Long‐run Effects on China of APEC Trade Liberalization
Author(s) -
Adams Philip D.,
Horridge Mark,
Parmenter Brian R.,
Zhang XiaoGuang
Publication year - 2000
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.00087
Subject(s) - computable general equilibrium , china , economics , liberalization , international economics , short run , international trade , free trade , stock (firearms) , competition (biology) , capital (architecture) , monetary economics , macroeconomics , market economy , archaeology , mechanical engineering , ecology , history , biology , political science , law , engineering
Plans for trade liberalization within the Asia–Pacific Economic Co‐operation (APEC) Forum include the elimination of all tariffs between member states. The study in this paper uses two computable general equilibrium models to examine the effects of these plans, focusing on China. The modelling shows that liberalization increases China’s capital stock and real GDP. The implication for Chinese industries depends on the extent to which liberalization 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.