The Global Welfare Impact of China: Trade Integration and Technological Change | E-Axes
 

Search
Login
Username:
Password:
Not a member yet? Click here.
Forgot your Password?
Archives - Categories
Home
On Inequality
On the Eurozone Debt Crisis
On Monetary Policy and Central Banking
On Global Economic Growth
On the Greek Debt Crisis
On the Banking and Financial Sectors
On Brexit
On China
On India
On Global Inflation
On Currencies
On the US Debt
On the "Economics" of the Arab Spring
Blogs
Working Papers
Books
Books suggested by members



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

Abstract

The paper evaluates the global welfare impact of China's trade integration and technological change in a quantitative Ricardian-Heckscher-Ohlin model implemented on 75 countries. We simulate two alternative productivity 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 advantage sectors catch up disporportionally faster to the world productivity frontier. Contary to a well-known conjecture (Samuelson 2004), the large majority of countries in the sample, including the developed ones, experience an order of magnitude larger welfare gains when China's productivity growth is based towards its comparative disadvantage sectors. We demonstrate both analytically and quantitatively that this finding is driven by the inherently multilateral nature of world trade. As a separate but related excercise we quantify the world wide gains from China's trade integration.

To download the PDF version of thw working paper click here.


© 2011–2017 e-axes. All rights reserved. | Credits | Contact Us | Privacy Statement | Tue 16 Jan, 2018 11:37:12 AM
e-axes is proudly powered by Norder - Creative Solutions