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|dc.description.abstract||Many developing economies have joined or applied to join the WTO as part oftheir process of transformation to market-oriented economies. Accession to the WTOinvolves provisions to liberalize capital markets and to significantly reduce domesticindustrial subsidies to the, usually large, state-owned sector. Therefore, any welfaregains derived from such policies are to be considered as part of the welfare gains oftrade liberalization. In this paper we develop a dynamic applied general equilibriummodel to quantitatively assess the welfare benefits of capital market liberalization anddomestic industrial policy reform, and we apply it to the case of China's accession tothe WTO. We find that most of China's benefits of accessing the WTO are derivedfrom the reduction of the state-owned sector driven by the reform in domestic policyrequired by the treaty. The highest welfare benefits occur when both domestic policyreform and capital market liberalization are jointly implemented. Welfare is enhancedby early opening of the capital markets.||en_US|
|dc.relation.ispartofseries|||aMinnesota working papers / University of Minnesota, Center for Economic Research, Department of Economics |x320||en_US|
|dc.title||Economic Effects of Liberalization: The Case of China's Accession to the World Trade Organization||en_US|
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