wto impact china economy

The view focuses on the impact of China’s accession to the WTO on the sectoral production within China and its main trading partners. The accession would mainly benefit other countries in South-East Asia. Within China itself the sectors Wearing Apparel and Electronic Equipment would expand, while sectors as Motor Vehicles and Lumber and Wood will loose due the abolition of the high protective barriers in these sectors. The outcomes are however affected if tariff exemptions for intermediate and investment goods are modeled. If these exemptions are not introduced, the sector Textile declines while it expands if we take account of exemptions. The reason is that a large share of these goods is used for intermediate inputs. For sectors like Leather Products and Food Processing, which’s output is often used for final consumption, the opposite result prevails.

Ref:
http://www.princet