How Much Did China's WTO Accession Increase Economic Growth in Resource-Rich Countries?

CEPS Working Documents No. 384

18 Pages Posted: 5 Nov 2013

See all articles by Thomas Barnebeck Andersen

Thomas Barnebeck Andersen

University of Southern Denmark - Department of Business and Economics

Mikkel Barslund

Centre for European Policy Studies (CEPS)

Casper Worm Hansen

University of Copenhagen - Department of Economics; University of Copenhagen

Thomas Harr

University of Copenhagen - Department of Economics

Peter S. Jensen

University of Southern Denmark - Department of Business and Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 3, 2013

Abstract

This Working Document provides an estimate of China’s impact on the growth rate of resource-rich countries since its WTO accession in December 2001. The authors’ empirical approach follows the logic of the differences-in-differences estimator. In addition to temporal variation arising from the WTO accession, which they argue was exogenous to other countries’ growth trajectories, the authors exploit spatial variation arising from differences in natural resource wealth. In this way they can compare changes in economic growth in the pre- and post-accession periods between countries that benefited from the surge in demand for industrial commodities brought about by China’s WTO accession and countries that were less able to do so. They find that that roughly one-tenth of the average annual post-accession growth in resource-rich countries was due to China’s increased appetite for commodities. The authors use this finding to inform the debate about what will happen to economic growth in resource-rich countries as China rebalances and its demand for commodities weakens.

Keywords: China, WTO, WTO accession, resource-rich countries, commodities, economic growth

Suggested Citation

Andersen, Thomas Barnebeck and Barslund, Mikkel and Hansen, Casper Worm and Hansen, Casper Worm and Harr, Thomas and Jensen, Peter S., How Much Did China's WTO Accession Increase Economic Growth in Resource-Rich Countries? (October 3, 2013). CEPS Working Documents No. 384, Available at SSRN: https://ssrn.com/abstract=2350129

Thomas Barnebeck Andersen (Contact Author)

University of Southern Denmark - Department of Business and Economics ( email )

Campusvej 55
DK-5230 Odense, 5000
Denmark

Mikkel Barslund

Centre for European Policy Studies (CEPS) ( email )

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Brussels, 1000
Belgium

Casper Worm Hansen

University of Copenhagen ( email )

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Copenhagen, København DK-1165
Denmark

University of Copenhagen - Department of Economics ( email )

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Copenhagen K, DK 1153
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Thomas Harr

University of Copenhagen - Department of Economics ( email )

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Denmark
(+) 45 35323258 (Phone)
(+) 45 35323000 (Fax)

Peter S. Jensen

University of Southern Denmark - Department of Business and Economics ( email )

Campusvej 55
DK-5230 Odense M, 5230
Denmark

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