Effects Of Reducing Tariffs And Endogenous Productivity Growth

Topics:
Organization
Tags:
Finance,
Free Trade,
Monash University,
Productivity Improvement,
Tariff
Source:
Monash University

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Overview: In this paper, the effects of China's WTO commitments of reducing tariff and non-tariff barriers are analysed using a Computable General Equilibrium (CGE) model of China. In particular, this study draws the attention of policy makers to a different regional employment outcome when trade-liberalisation induced productivity improvements are taken into account. Trade-liberalisation induced productivity improvements occur when local producers survive import competition by seeking (most likely importing) input-saving technologies and production practice. Such endogenous productivity improvements, based on empirical estimates, are endogenously represented in the model.

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Format: PDF | Size: 308KB | Date: Dec 2003 | Pages: 17

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