2000•Pacific Economic ReviewRequires access

Impact Of Tariff Reduction On Structural Employment In China: A Computable General Equilibrium Analysis

Dianqing Xu, Gene Hsin Chang

Abstract

The paper studies the effect of tariff reduction on employment in China. Using a computable general equilibrium (CGE) analysis, a model simulates the structural adjustment in the Chinese economy as a result of tariff cuts and predicts their quantitative impacts on structural unemployment during the adjustment period. It is concluded that the structural unemployment in China caused by tariff reduction is not as serious as some have claimed. The technique of study on structural unemployment can be extended to other countries to analyze the impact of trade reform.

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Key concepts: Computable general equilibrium, Economics, Tariff, Unemployment, China, General equilibrium theory, Chinese economy, Structural adjustment