By David Greenaway, Chris Milner, Shujie Yao (eds.)
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Additional info for China and the World Economy
They suggest that global liberalization of agriculture and food yields 63% of the total global gains, a result very similar to that obtained by Hertel and Keeney (2006) using a different model. This finding is consistent with the high tariffs in agriculture and food versus other sectors, but it is nonetheless remarkable given the low shares of agriculture in global GDP (4%) and global merchandise trade (9%). The elimination of trade-distorting farm policies in high-income countries accounts for three-fourths of those gains.
This provided the baseline from which we considered potential liberalization under the Doha Agenda. We first considered a hypothetical benchmark of complete liberalization, and then compared this with scenarios more in the spirit of the declaration emerging from the Hong Kong Ministerial meeting of the WTO in late 2005. 4. The Full Liberalization Benchmark While the full liberalization scenario is totally unrealistic as a policy experiment, it does provide a very useful point of comparison with other scenarios.
The authors argue that over the past three decades China’s economic miracle has featured an open-door policy, most notably in the absorption of foreign capital. One of the downside effects of economic reform, however, has been ever rising interregional inequality. As FDI is distributed unevenly across regions, many scholars and policymakers have blamed inflows of FDI as one of the main factors driving inequality across China’s regions. By this logic, controlling the scale of FDI could be a solution to regional inequality.
China and the World Economy by David Greenaway, Chris Milner, Shujie Yao (eds.)