Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2004-05-04
Number: 04-049/2
Author-Name: Joseph F. Francois
Author-Email: francois@few.eur.nl
Author-Workplace-Name: Department of Economics, Erasmus Universiteit Rotterdam, and CEPR
Author-Name: Dean Spinanger
Author-Email: dspinanger@ifw.uni-kiel.de
Author-Workplace-Name: Institute for World Economics, Kiel
Title: Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China
Abstract: 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.
Classification-JEL: F13; F14; F17
Keywords: China Accession to WTO; Automobile Sector
File-Url: https://papers.tinbergen.nl/04049.pdf
File-Format: application/pdf
File-Size: 242256 bytes
Handle: RePEc:tin:wpaper:20040049