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

Posted: 29 Feb 2008

See all articles by Shaohua Chen

Shaohua Chen

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

Martin Ravallion

Georgetown University

Date Written: 2004

Abstract

Data from China`s national rural and urban household surveys are used to measure and explain the welfare impacts of changes in goods and factor prices attributable to accession to the World Trade Organization. The 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 calibrated to household-level data and imposing minimum aggregation. The results show 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.

Suggested Citation

Chen, Shaohua and Ravallion, Martin, Welfare Impacts of China's Accession to the World Trade Organization ( 2004). The World Bank Economic Review, Vol. 18, Issue 1, pp. 29-57, 2004, Available at SSRN: https://ssrn.com/abstract=923660

Shaohua Chen (Contact Author)

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

Georgetown University ( email )

Washington, DC 20057
United States

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