Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China

Regulated Efficiency, World Trade Organization Accession, and the Motor Vehicle Sector in China

This article is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China's motor vehicle sector. The analysis is conducted using a 23 sector-25 region computable general equili...

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Bibliographic Details
Main Authors:	Francois, Joseph F., Spinanger, Dean
Format:	Journal Article
Language:	English en_US
Published:	Washington, DC: World Bank 2014
Subjects:	ABSENCE OF COMPETITION AGRICULTURE AIR APPAREL AUTO INDUSTRY AUTO_INDUSTRY AUTOMOBILE AUTOMOBILE INDUSTRY AUTOMOBILE PARTS AUTOMOBILE PRODUCTION AUTOMOBILES AUTOMOTIVE INDUSTRY AUTOMOTIVE SECTOR AVERAGE TARIFF BARRIERS TO TRADE BENCHMARK BUSES CAPITAL FLOWS CAR CAR COMPANIES CARS CHANGES IN TRADE COMPONENT PARTS CONSTANT ELASTICITY OF SUBSTITUTION DEVELOPMENT ECONOMICS DOMESTIC COMPETITION DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCTION ECONOMIC POLICIES ECONOMIC POLICY ELASTICITY ELASTICITY OF SUBSTITUTION ENGINE EXPORT ORIENTATION EXPORT SHARE EXPORT SHARES EXPORTS FACTORS OF PRODUCTION FOREIGN COMPANIES FOREIGN COMPETITION FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN OWNERSHIP FOREIGN PRODUCER FOREIGN PRODUCERS FOREIGN PRODUCTION FOREIGN SOURCES FRAMEWORK FREE TRADE FREE TRADE AGREEMENT GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL INTEGRATION GLOBAL TRADE GLOBAL TRADE ANALYSIS GNP GRAVITY EQUATION GRAVITY ESTIMATES HIGH TARIFFS IMPERFECT COMPETITION IMPERFECT SUBSTITUTES IMPORT COMPETITION IMPORT PROTECTION IMPORT QUOTAS IMPORT RESTRICTIONS IMPORT SHARE IMPORT SUBSTITUTION IMPORTS INCOME LEVELS INCREASING RETURNS INDUSTRIAL POLICIES INDUSTRIAL POLICY INDUSTRIALIZATION INJURY INTERMEDIATE INPUTS INTERNATIONAL TRADE INTERNATIONAL TRADE COMMISSION MARGINAL COST MARKET ACCESS MARKET SEGMENTATION MARKET SHARE METAL PRODUCTS MOST FAVORED NATION MOTOR CAR MOTOR VEHICLE MOTOR VEHICLE INDUSTRY MOTOR VEHICLE PRODUCTION MOTOR VEHICLES MOTORCYCLES MULTILATERAL TRADE MULTILATERAL TRADE NEGOTIATIONS PARKING PASSENGER PASSENGER CARS PER CAPITA INCOME POLITICAL ECONOMY PRODUCTION EFFICIENCY PROTECTIONISM PURCHASING POWER QUOTAS REGULATORY REGIMES RETAIL TRADE ROADS STEEL STRUCTURES TARIFF RATES TARIFF REDUCTIONS TARIFF SCHEDULE TARIFF SCHEDULES TAXIS TECHNOLOGY TRANSFER TRADE BARRIERS TRADE DEVELOPMENT TRADE FLOWS TRADE LIBERALIZATION TRADE NEGOTIATIONS TRADE POLICY TRADE RESTRICTIONS TRANSPORT TRANSPORT SERVICES TRANSPORTATION TRANSPORTATION SERVICES TRUCKS URUGUAY ROUND VALUE ADDED VEHICLE MANUFACTURERS VEHICLE MANUFACTURING VEHICLE PRODUCTION VEHICLES WELFARE GAINS WORLD PRICES WORLD TRADE WORLD TRADE ORGANIZATION WTO
Online Access:	http://documents.worldbank.org/curated/en/2004/01/17742461/regulated-efficiency-world-trade-organization-accession-motor-vehicle-sector-china http://hdl.handle.net/10986/17137

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Summary:	This article is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China's motor vehicle sector. The analysis is conducted using a 23 sector-25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry.