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The Rise of China: Prospects of Regional Trade Policy

Filip Abraham

KU Leuven - Department of Economics

Jan Van Hove

KU Leuven - Center for Economic Studies

February 2005

China now engages in multilateral trade liberalization as a new member of the WTO. Concurrently, the number of regional trade agreements is increasing worldwide. China and its trading partners would benefit from increased regional liberalization. Using a gravity equation for 23 Asia-Pacific countries between 1992 and 2000, we show that ASEAN and APEC currently have small effects on Asia-Pacific exports, which are mainly influenced by growth, trade barriers and common language. However, we find that China's participation in regional agreements has large export potentials, not only with respect to ASEAN, but also in a broad agreement including South- and East-Asian countries.

Number of Pages in PDF File: 29

Keywords: China, Economic Integration, Trade Forecasting and Simulation, Gravity Model

JEL Classification: F15, F17

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Date posted: September 29, 2005  

Suggested Citation

Abraham, Filip and Van Hove, Jan, The Rise of China: Prospects of Regional Trade Policy (February 2005). Available at SSRN: http://ssrn.com/abstract=809024 or http://dx.doi.org/10.2139/ssrn.809024

Contact Information

Filip Abraham (Contact Author)
KU Leuven - Department of Economics ( email )
Leuven, B-3000
Jan Van Hove
KU Leuven - Center for Economic Studies ( email )
Naamsestraat 69
Leuven, B-3000
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