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Impact Of Tariff Reduction On Structural Employment In China: A Computable General Equilibrium Analysis
Author(s) -
Xu Dianqing,
Chang Gene H.
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 - 10.1111/1468-0106.00097
Subject(s) - computable general equilibrium , economics , tariff , unemployment , china , general equilibrium theory , chinese economy , structural adjustment , macroeconomics , structural unemployment , international economics , market economy , political science , law
The paper studies the effect of tariff reduction on employment in China. Using a computable general equilibrium (CGE) analysis, a model simulates the structural adjustment in the Chinese economy as a result of tariff cuts and predicts their quantitative impacts on structural unemployment during the adjustment period. It is concluded that the structural unemployment in China caused by tariff reduction is not as serious as some have claimed. The technique of study on structural unemployment can be extended to other countries to analyze the impact of trade reform.