Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China
2004-05-04
Research Paper
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This paper is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China’s motor vehicle sector. The analysis is conducted using a 23 sector–25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- F14 : Country and Industry Studies of Trade
- F17 : Trade Forecasting and Simulation
- F13 : Commercial Policy; Protection; Promotion; Trade Negotiations; International Organizations
Automatically Extracted Terms
- china
- vehicle
- production
- motor
- sector
- percent
- industry
- trade
- automobile
- model
- plant
- accession
- table
- motor vehicles
- world
- restructuring
- import
- tariff
- service
- policy
