Household Welfare Impacts of China's Accession to the World Trade Organization

42 Pages Posted: 29 Aug 2003

See all articles by Shaohua Chen

Shaohua Chen

World Bank; World Bank - Development Research Group (DECRG)

Martin Ravallion

Georgetown University

Date Written: May 2003

Abstract

Chen and Ravallion use China's national household surveys for rural and urban areas to measure and explain the welfare impacts of the changes in goods and factor prices attributed to WTO accession. Price changes are estimated separately using a general equilibrium model to capture both direct and indirect effects of the initial tariff changes. The welfare impacts are first-order approximations based on a household model incorporating own-production activities and are calibrated to the household-level data imposing minimum aggregation. The authors find negligible impacts on inequality and poverty in the aggregate. However, diverse impacts emerge across household types and regions associated with heterogeneity in consumption behavior and income sources, with possible implications for compensatory policy responses.

This paper - a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to assess the household.

Suggested Citation

Chen, Shaohua and Ravallion, Martin, Household Welfare Impacts of China's Accession to the World Trade Organization (May 2003). World Bank Policy Research Working Paper No. 3040. Available at SSRN: https://ssrn.com/abstract=422340

Shaohua Chen

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Martin Ravallion (Contact Author)

Georgetown University ( email )

Washington, DC 20057
United States

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