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2003•Pacific Economic ReviewRequires access

WTO ACCESSION AND CHINA's DOMESTIC REGIONAL LIBERALIZATION: A THEORETICAL ANALYSIS

Jie Li, Anming Zhang

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Abstract

Abstract. This paper examines the implications of China's WTO accession for its domestic regional liberalization. We find first that, without WTO membership, regional liberalization might create a trade diversion that benefited only low‐protection regions while harming high‐protection regions, and it might or might not benefit the country as a whole. Second, we find that WTO entry will benefit the whole country, whether there is regional liberalization or not. Third, we find that WTO entry will facilitate domestic regional liberalization.

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What this paper is about

Abstract. This paper examines the implications of China's WTO accession for its domestic regional liberalization. We find first that, without WTO membership, regional liberalization might create a trade diversion that benefited only low‐protection regions while harming high‐protection regions, and it might or might not benefit the country as a whole. Second, we find that WTO entry will benefit the whole country, whether there is regional liberalization or not. Third, we find that WTO entry will facilitate domestic regional liberalization.

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Available abstract

Abstract. This paper examines the implications of China's WTO accession for its domestic regional liberalization. We find first that, without WTO membership, regional liberalization might create a trade diversion that benefited only low‐protection regions while harming high‐protection regions, and it might or might not benefit the country as a whole. Second, we find that WTO entry will benefit the whole country, whether there is regional liberalization or not. Third, we find that WTO entry will facilitate domestic regional liberalization.

Key concepts: Accession, Liberalization, China, International economics, Free trade, International trade, Economics, Trade diversion

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