1. Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China
- Author
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Joseph Francois and Dean Spinanger
- Subjects
TRADE LIBERALIZATION ,Computable general equilibrium ,MARKET ACCESS ,DOMESTIC PRODUCTION ,CAPITAL FLOWS ,INTERMEDIATE INPUTS ,Market access ,GENERAL EQUILIBRIUM ,VALUE ADDED ,Regulatory reform ,WORLD TRADE ,Rationalization (economics) ,MOTORCYCLES ,MOST FAVORED NATION ,Accession ,ELASTICITY OF SUBSTITUTION ,GRAVITY ESTIMATES ,Consolidation (business) ,CAR COMPANIES ,AUTOMOBILE PARTS ,CHANGES IN TRADE ,Economics ,CARS ,DOMESTIC MARKET ,Free trade ,GLOBAL INTEGRATION ,TAXIS ,TRADE NEGOTIATIONS ,MOTOR VEHICLE INDUSTRY ,QUOTAS ,PASSENGER ,CONSTANT ELASTICITY OF SUBSTITUTION ,CAR ,PER CAPITA INCOME ,FOREIGN PRODUCERS ,EXPORT SHARES ,FOREIGN COMPETITION ,TARIFF REDUCTIONS ,TRADE POLICY ,WORLD TRADE ORGANIZATION ,DOMESTIC COMPETITION ,MARGINAL COST ,REGULATORY REGIMES ,ABSENCE OF COMPETITION ,INDUSTRIAL POLICIES ,WELFARE GAINS ,ENGINE ,DEVELOPMENT ECONOMICS ,Development ,PRODUCTION EFFICIENCY ,AUTOMOBILE INDUSTRY ,VEHICLE MANUFACTURING ,IMPORT SUBSTITUTION ,INJURY ,PURCHASING POWER ,TRADE BARRIERS ,IMPORT PROTECTION ,Trade barrier ,BUSES ,WORLD PRICES ,APPAREL ,IMPORT QUOTAS ,TRADE DEVELOPMENT ,HIGH TARIFFS ,ELASTICITY ,INDUSTRIALIZATION ,MOTOR VEHICLES ,AUTOMOBILE PRODUCTION ,FRAMEWORK ,INCOME LEVELS ,MOTOR CAR ,MOTOR VEHICLE ,FOREIGN PRODUCTION ,TARIFF SCHEDULES ,BARRIERS TO TRADE ,IMPERFECT SUBSTITUTES ,FREE TRADE AGREEMENT ,VEHICLE PRODUCTION ,AUTOMOBILE ,MULTILATERAL TRADE ,PROTECTIONISM ,AGRICULTURE ,STRUCTURES ,FREE TRADE ,GRAVITY EQUATION ,International trade ,WTO ,IMPORT RESTRICTIONS ,PASSENGER CARS ,FOREIGN PRODUCER ,TRANSPORTATION SERVICES ,POLITICAL ECONOMY ,ROADS ,IMPORT SHARE ,GLOBAL TRADE ANALYSIS ,Commercial policy ,EXPORTS ,Multilateral trade negotiations ,DOMESTIC INDUSTRY ,GLOBAL TRADE ,AIR ,GENERAL EQUILIBRIUM MODEL ,INDUSTRIAL POLICY ,METAL PRODUCTS ,BENCHMARK ,INTERNATIONAL TRADE ,MARKET SEGMENTATION ,MOTOR VEHICLE PRODUCTION ,VEHICLES ,RETAIL TRADE ,ECONOMIC POLICIES ,MULTILATERAL TRADE NEGOTIATIONS ,TRADE FLOWS ,EXPORT SHARE ,Economics and Econometrics ,AVERAGE TARIFF ,GNP ,Restructuring ,ECONOMIC POLICY ,TRANSPORT SERVICES ,URUGUAY ROUND ,EXPORT ORIENTATION ,TECHNOLOGY TRANSFER ,IMPORTS ,IMPORT COMPETITION ,AUTOMOTIVE INDUSTRY ,FOREIGN SOURCES ,MARKET SHARE ,VEHICLE MANUFACTURERS ,automobile sector ,China accession to wto ,Accounting ,AUTO_INDUSTRY ,AUTOMOBILES ,FOREIGN OWNERSHIP ,China ,FOREIGN INVESTMENT ,AUTOMOTIVE SECTOR ,TRUCKS ,business.industry ,STEEL ,TRADE RESTRICTIONS ,FOREIGN FIRMS ,IMPERFECT COMPETITION ,INCREASING RETURNS ,jel:F13 ,INTERNATIONAL TRADE COMMISSION ,jel:F14 ,Protectionism ,TRANSPORT ,TRANSPORTATION ,jel:F17 ,FOREIGN COMPANIES ,Position (finance) ,PARKING ,FACTORS OF PRODUCTION ,TARIFF RATES ,COMPONENT PARTS ,business ,AUTO INDUSTRY ,TARIFF SCHEDULE ,Finance ,China Accession to WTO ,Automobile Sector - Abstract
This article is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China's motor vehicle sector. The analysis is conducted using a 23 sector-25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry.
- Published
- 2004
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