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The Global Impact of Chinese Growth

Otsu, Keisuke and Saito, Masashi and Fujiwara, Ippei (2011) The Global Impact of Chinese Growth. Discussion paper. University of Kent School of Economics Discussion Papers

Abstract

Three decades have passed since China dramatically opened up to the global market and began to catch up rapidly with leading economies. In this paper we discuss the effects of China's opening-up and rapid growth on the welfare of both China and the rest of the world (ROW). We find that the opening-up per se is welfare improving for China but has had little impact on the ROW. The opening-up of China is beneficial to the ROW if it led to significant productivity growth in China. Furthermore, China's balanced trade policy after the opening-up has helped the ROW rather than China. Hence, according to a simple neoclassical model with complete markets, a gradual trade liberalization in China is preferable to a drastic one from the ROW perspective.

Item Type: Monograph (Discussion paper)
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: K. Otsu
Date Deposited: 15 Nov 2014 21:37 UTC
Last Modified: 29 May 2019 13:31 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/44636 (The current URI for this page, for reference purposes)
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