scholarly journals The Global Welfare Impact of China: Trade Integration and Technological Change

2014 ◽  
Vol 6 (3) ◽  
pp. 153-183 ◽  
Author(s):  
Julian di Giovanni ◽  
Andrei A. Levchenko ◽  
Jing Zhang
Keyword(s):  
Technological Change ◽  
Productivity Growth ◽  
World Trade ◽  
Trade Integration ◽  
Welfare Gains ◽  
Welfare Impact ◽  
China Trade ◽  
The World ◽  
Global Welfare ◽  
Catch Up

This paper evaluates the global welfare impact of China's trade integration and technological change in a multi-country quantitative Ricardian-Heckscher-Ohlin model. We simulate two alternative growth scenarios: a “balanced” one in which China's productivity grows at the same rate in each sector, and an “unbalanced” one in which China's comparative disadvantage sectors catch up disproportionately faster to the world productivity frontier. Contrary to a well-known conjecture (Samuelson 2004), the large majority of countries experience significantly larger welfare gains when China's productivity growth is biased toward its comparative disadvantage sectors. This finding is driven by the inherently multilateral nature of world trade. (JEL F14, F43, 019, 033, 047, P24, P33)

scholarly journals The Global Welfare Impact of China: Trade Integration and Technological Change

2012 ◽  
Vol 12 (79) ◽  
pp. 1 ◽  
Author(s):  
Julian di Giovanni ◽  
Jing Zhang ◽  
Andrei A. Levchenko ◽  
◽  
◽  
...  
Keyword(s):  
Technological Change ◽  
Trade Integration ◽  
Welfare Impact ◽  
China Trade ◽  
Global Welfare

scholarly journals Structural Change and Global Trade

2021 ◽  
Author(s):  
Logan T Lewis ◽  
Ryan Monarch ◽  
Michael Sposi ◽  
Jing Zhang
Keyword(s):  
Structural Change ◽  
World Trade ◽  
Trade Costs ◽  
Trade Integration ◽  
Welfare Gains ◽  
Services Trade ◽  
The Past ◽  
Trade Model ◽  
Percentage Points ◽  
The World

Abstract Services, which are less traded than goods, rose from 55% of world expenditure in 1970 to 75% in 2015. Using a Ricardian trade model incorporating endogenous structural change, we quantify how this substantial shift in consumption has affected trade. Without structural change, we find that the world trade to GDP ratio would be 13 percentage points higher by 2015, about half the boost delivered from declining trade costs. In addition, a world without structural change would have had about 40% greater welfare gains from the trade integration over the past four decades. Absent further reductions in trade costs, ongoing structural change implies that world trade as a share of GDP would eventually decline. Going forward, higher income countries gain relatively more from reducing services trade costs than from reducing goods trade costs.

Prospects for global trade in 2020-24

2019 ◽  
Keyword(s):  
World Trade ◽  
Job Creation ◽  
Value Chains ◽  
Global Trade ◽  
Trading System ◽  
Content Type ◽  
China Trade ◽  
The Us ◽  
Multilateral Trading System ◽  
The World

Subject Prospects for global trade in 2020-24. Significance US-China competition and a ‘populist backlash’ against trade in advanced nations are intensifying fears that the world is entering de-globalisation. World trade volumes are expected to grow modestly in 2019 and 2020, while the US-China trade conflict roils the multilateral trading system and global value chains, harming investment and job creation.

Total factor productivity growth and its decomposition in the Chinese construction industry since China's accession to the World Trade Organization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuhe Wang ◽  
Gui Ye ◽  
Chenli Zheng ◽  
Shilian Zhang
Keyword(s):  
World Trade Organization ◽  
Construction Industry ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
World Trade ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Content Type ◽  
The World

PurposeSince China's accession of the World Trade Organization (WTO), its construction industry has attained unprecedented growth. However, for the sources of this enormous growth, a controversy regarding the total factor productivity growth (TFPG) still remains in production practice and extant studies. In view of this, the purpose of this paper is to measure TFPG and to explore its sources in the industry post-WTO accession.Design/methodology/approachThis study presents an innovative source analysis of TFPG. Stochastic frontier approach is adopted to measure TFPG and to explore its sources by decomposing TFPG into technical progress (TP), technical efficiency change (TEC), allocative efficiency change (AEC) and scale efficiency change (SEC). Although China joined WTO in 2001, to provide an effective baseline, the study period is from 2000 to 2017.FindingsThe empirical results reveal that TFPG presented an overall downward evolutionary trend, but it still maintained a high growth post-WTO accession. From the perspective of decomposition, TP was the main source of TFPG. Furthermore, as a neglected source, interaction effects among TP, TEC, AEC and SEC have been demonstrated to have a significant influence on the cumulative TFPG.Practical implicationsTo make the results be reliable, the authors discuss the empirical findings mainly by revealing the reasons behind the evolutions of TFPG and its sources. Based on these revealed reasons, government and policy makers can further refine and summarize some more detailed and targeted policy implications to improve TFPG.Originality/valueBy providing many empirical evidences to solve the aforesaid TFPG controversy, this paper, therefore, enriches the body of knowledge on growth theories, especially at the level of industrial economics.

High Stakes: US-China Trade Disputes under the World Trade Organization (WTO)

2013 ◽  
Vol 41 (3-4) ◽  
pp. 352-380 ◽  
Author(s):  
Ka Zeng
Keyword(s):  
World Trade Organization ◽  
World Trade ◽  
Dispute Settlement ◽  
Bilateral Trade ◽  
Cost Benefit Analysis ◽  
Dispute Settlement Mechanism ◽  
Trade Disputes ◽  
The Past ◽  
China Trade ◽  
The World

Abstract This paper examines US-China trade disputes under the World Trade Organization (WTO) and argues that Chinese leaders are increasingly resorting to the WTO’s dispute settlement mechanism to target issues of most critical concern to domestic constituencies. The following overview of the WTO disputes initiated by China suggests that China’s WTO disputes tend to be dominated by cases involving anti-dumping duties (ADs) and countervailing duties (CVDs). The disproportionate share of such trade remedy cases in China’s WTO cases needs to be viewed in light of the fact that China has become the leading target of such cases worldwide in the past decades. The above pattern of China’s WTO initiation is explicable within the leader cost-benefit analysis, which would lead us to expect Chinese leaders to use the WTO DSM either to open foreign markets for Chinese businesses or to shield domestic firms from perceived unfair foreign trade practices. This paper further argues that the significant expansion of bilateral trade relations in the past decades has provided opportunities for Chinese leaders to identify or threaten retaliation against anti-protectionist groups in the other country in order to mobilise them against the disputed measure.

An RCA Analysis of India–China Trade Integration

2017 ◽  
Vol 53 (1) ◽  
pp. 49-58
Author(s):  
Imran Ahmad ◽  
Mohd Hussain Kunroo ◽  
Irfan Ahmad Sofi
Keyword(s):  
Raw Materials ◽  
World Market ◽  
Trade Integration ◽  
Trade Patterns ◽  
China Trade ◽  
Long Run ◽  
The World ◽  
Upward Moving ◽  
Merchandise Trade ◽  
India And China

The present study discusses the short- and long-run trade patterns of India and China. Applying revealed comparative advantage (RCA) and bilateral RCA, this study specifically tries to find out the pattern of exports and areas of specialization of the economies under study. Major findings suggest that both the countries have been performing well, in terms of merchandise trade exports, over the past few decades, especially since 2000. The export-performing behaviour of India and China with each other, as well as with the world, is seen quite general in nature. In other words, irrespective of their institutional and structural differences, both India and China maintain almost the same upward moving trend with respect to the flow of exports between them and that with the world market. However, once we go from Standard International Trade Classification (SITC) two-digit to SITC four-digit level of analysis, the sample economies reveal their specialized products. At the disaggregate level, India’s export basket is void of food products and raw materials, and it generally contains engineering goods and technologically driven products as advantageous products. The study finds that the areas of specialization are much wider, and the technology-embedded products are larger for China as compared to India. JEL: F10, F11, F43

scholarly journals Russia in world trade: Between globalism and regionalism

2019 ◽  
Vol 5 (4) ◽  
pp. 354-384
Author(s):  
Arne Melchior
Keyword(s):  
Foreign Trade ◽  
Eastern Europe ◽  
World Trade ◽  
Simulation Analysis ◽  
Model Simulation ◽  
West Siberia ◽  
Trade Integration ◽  
Welfare Gain ◽  
The World ◽  
Manufacturing Growth

The article examines Russia’s participation in world trade and trade policy, using trade data for 1996–2017 and simulations of a numerical world trade model where Russia is divided into domestic regions. Since the mid-1990s, Russia’s foreign trade has grown much faster than the world average. This was accompanied by rapid deterioration in the trade balance for manufacturing, and fast redirection of imports, with more from China and relatively less from others, especially Eastern Europe. Only 1/8 of Russia’s foreign trade in 2017 was with Eastern Europe. This is why Russia can gain more from trade integration with the world beyond Eastern Europe, according to the model simulation analysis. For Russian domestic regions, multilateral liberalization among all countries has a similar effect across all of them, with a welfare gain due to lower import prices. For the commodity-exporting regions of Russia, preferential free trade agreements (FTAs) have a similar impact. For the more industrialized Russian regions, on the other hand, FTAs lead to manufacturing growth, rising wages and higher prices, and a larger welfare gain. According to the model simulations, trade integration promotes industrial diversification, with manufacturing growth also in some commodity regions. The results indicate that external liberalization is particularly important for the central parts of Russia; with Volga and West Siberia generally obtaining the strongest manufacturing boost from trade integration.

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