Quantifying the Spillovers from China Rebalancing Using a Multi-Sector Ricardian Trade Model

39 Pages Posted: 3 Jan 2017

See all articles by Rui C. Mano

Rui C. Mano

International Monetary Fund

Date Written: November 2016

Abstract

This paper assesses the spillovers from different facets of China rebalancing using a calibrated Ricardian trade model that includes 41 economies, each consisting of 34 sectors. We find that China's move up the value chain in particular has the potential for significant spillovers - on the one hand, adversely affecting industrialized economies heavily involved in the Asia value chain, while at the same time generating positive spillovers to lower and middle income countries. The model's strength lies in endogenously capturing production value chains and international trade of goods across sectors.

Keywords: Spillovers, China, Demand, Consumption, Economic sectors, International trade, Trade models, Transition economies, Spillovers, China rebalancing, trade channel, sectoral trade

JEL Classification: F11, F14, F17

Suggested Citation

Mano, Rui C., Quantifying the Spillovers from China Rebalancing Using a Multi-Sector Ricardian Trade Model (November 2016). IMF Working Paper No. 16/219, Available at SSRN: https://ssrn.com/abstract=2892605

Rui C. Mano (Contact Author)

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

HOME PAGE: http://sites.google.com/site/ruimano/

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