Premium
Economic Integration Among Taiwan, Hong Kong and China: A Computable General Equilibrium Analysis
Author(s) -
Wang Zhi,
Schuh G. Edward
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 - 10.1111/1468-0106.00101
Subject(s) - computable general equilibrium , china , economics , economic integration , east asia , international trade , general equilibrium theory , chinese economy , production (economics) , international economics , economy , macroeconomics , geography , archaeology
This paper investigates the effects of economic integration among Taiwan, Hong Kong and China (CEA). A seven‐region, seven‐sector computable general equilibrium model for world production and trade is developed for this purpose. The simulation results demonstrate that the three Chinese economies would benefit greatly from further integration by means of liberalizing trade policies. The opportunity cost of isolating the United States from East Asia is high for both the US and the three Chinese economies, suggesting that an economically integrated CEA is in the long‐term strategic interest of the United States.