Household welfare impacts of China ' s accession to the World Trade Organization

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Household welfare impacts of China's accession to the World Trade Organization, Volume 1

Author:	Chen, Shaohua; Ravallion, Martin;	Collection Title:	Policy, Research working paper series ; no. WPS 3040
Country:	China;	Date Stored:	2003/05/23
Document Date:	2003/05/31	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	(Historic)Sector not applicable
Region:	East Asia and Pacific	Report Number:	WPS3040
Sub Sectors:	(Historic)Sector not applicable	SubTopics:	Environmental Economics & Policies; Payment Systems & Infrastructure; Economic Theory & Research; Poverty Lines; Inequality; Labor Policies; Health Economics & Finance
Volume No:	1

Summary: The authors use China's national household surveys for rural and urban areas to measure and explain the welfare impacts of the changes in goods and factor prices attributed to WTO accession. 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 and are calibrated to the household-level data imposing minimum aggregation. The authors find 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.


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