CoPS/IMPACT Working Paper Number G-130

Title: Long-run Effects on China of APEC Trade Liberalisation

Authors: Philip D. Adams, Mark Horridge, Brian Parmenter and Xiao-Guang Zhang


Plans for APEC trade liberalisation include the elimination of all tariffs between member states. In this paper we use two computable general equilibrium models to examine the effects of these plans, focussing on China. Our modelling shows that liberalisation increases China's capital stock and real GDP. The implication for Chinese industries depend on the extent to which liberalisation 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.

JEL Classification: C68, F15

Please cite the later published version in:
Pacific Economic Review, Vol 5(1) 2000, pp. 15-47.

Keywords: Computable General Equilibrium Models, Economic Integration

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