The Impact of China's WTO Accession on East Asia
China's World Trade Organization (WTO) accession will have major implications for China and present both opportunities and challenges for East Asia. Ianchovichina and Walmsley assess the possible channels through which China's accession t...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/08/2480797/impact-chinas-wto-accession-east-asia http://hdl.handle.net/10986/18127 |
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okr-10986-181272021-04-23T14:03:41Z The Impact of China's WTO Accession on East Asia Ianchovichina, Elena Walmsley, Terrie COMPETITION FOREIGN INVESTMENT GLOBAL MARKETS NEWLY INDUSTRIALIZING ECONOMIES NIE NIE EXPORTS TEXTILE AND APPAREL SECTOR WORLD TRADE ORGANIZATION WTO WTO ACCESSION China's World Trade Organization (WTO) accession will have major implications for China and present both opportunities and challenges for East Asia. Ianchovichina and Walmsley assess the possible channels through which China's accession to the WTO could affect East Asia and quantify these effects using a dynamic computable general equilibrium model. China will be the biggest beneficiary of accession, followed by the industrial and newly industrializing economies (NIEs) in East Asia. But their benefits are small relative to the size of their economies and to the vigorous growth projected to occur in the region over the next 10 years. By contrast, developing countries in East Asia are expected to incur small declines in real GDP and welfare as a result of China's accession, mainly because with the elimination of quotas on Chinese textile and apparel exports to industrial countries China will become a formidable competitor in areas in which these countries have comparative advantage. With WTO accession China will increase its demand for petrochemicals, electronics, machinery, and equipment from Japan and the NIEs, and farm, timber, energy products, and other manufactures from the developing countries in East Asia. New foreign investment is likely to flow into these expanding sectors. The overall impact on foreign investment is likely to be positive in the NIEs, but negative for the less developed East Asian countries as a result of the contraction of these economies' textile and apparel sector. As China becomes a more efficient supplier of services or a more efficient producer of high-end manufactures, its comparative advantage will shift into higher-end products. This is good news for the poor developing economies in East Asia, but it implies that the impact of China's WTO accession on the NIEs may change to include heightened competition in global markets. 2014-05-01T18:33:33Z 2014-05-01T18:33:33Z 2003-08 http://documents.worldbank.org/curated/en/2003/08/2480797/impact-chinas-wto-accession-east-asia http://hdl.handle.net/10986/18127 English en_US Policy Research Working Paper;No. 3109 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
COMPETITION FOREIGN INVESTMENT GLOBAL MARKETS NEWLY INDUSTRIALIZING ECONOMIES NIE NIE EXPORTS TEXTILE AND APPAREL SECTOR WORLD TRADE ORGANIZATION WTO WTO ACCESSION |
| spellingShingle |
COMPETITION FOREIGN INVESTMENT GLOBAL MARKETS NEWLY INDUSTRIALIZING ECONOMIES NIE NIE EXPORTS TEXTILE AND APPAREL SECTOR WORLD TRADE ORGANIZATION WTO WTO ACCESSION Ianchovichina, Elena Walmsley, Terrie The Impact of China's WTO Accession on East Asia |
| geographic_facet |
East Asia and Pacific China |
| relation |
Policy Research Working Paper;No. 3109 |
| description |
China's World Trade Organization
(WTO) accession will have major implications for China and
present both opportunities and challenges for East Asia.
Ianchovichina and Walmsley assess the possible channels
through which China's accession to the WTO could affect
East Asia and quantify these effects using a dynamic
computable general equilibrium model. China will be the
biggest beneficiary of accession, followed by the industrial
and newly industrializing economies (NIEs) in East Asia. But
their benefits are small relative to the size of their
economies and to the vigorous growth projected to occur in
the region over the next 10 years. By contrast, developing
countries in East Asia are expected to incur small declines
in real GDP and welfare as a result of China's
accession, mainly because with the elimination of quotas on
Chinese textile and apparel exports to industrial countries
China will become a formidable competitor in areas in which
these countries have comparative advantage. With WTO
accession China will increase its demand for petrochemicals,
electronics, machinery, and equipment from Japan and the
NIEs, and farm, timber, energy products, and other
manufactures from the developing countries in East Asia. New
foreign investment is likely to flow into these expanding
sectors. The overall impact on foreign investment is likely
to be positive in the NIEs, but negative for the less
developed East Asian countries as a result of the
contraction of these economies' textile and apparel
sector. As China becomes a more efficient supplier of
services or a more efficient producer of high-end
manufactures, its comparative advantage will shift into
higher-end products. This is good news for the poor
developing economies in East Asia, but it implies that the
impact of China's WTO accession on the NIEs may change
to include heightened competition in global markets. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ianchovichina, Elena Walmsley, Terrie |
| author_facet |
Ianchovichina, Elena Walmsley, Terrie |
| author_sort |
Ianchovichina, Elena |
| title |
The Impact of China's WTO Accession on East Asia |
| title_short |
The Impact of China's WTO Accession on East Asia |
| title_full |
The Impact of China's WTO Accession on East Asia |
| title_fullStr |
The Impact of China's WTO Accession on East Asia |
| title_full_unstemmed |
The Impact of China's WTO Accession on East Asia |
| title_sort |
impact of china's wto accession on east asia |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/08/2480797/impact-chinas-wto-accession-east-asia http://hdl.handle.net/10986/18127 |
| _version_ |
1764438922413211648 |