The aim of this paper is to analyze the effect of population growth and of the entry of a labor-abundant country, such as China, into the World Trade Organization (WTO) on the North and on the South of the world. We shall investigate essentially three aspects: 1. the effect of population growth on • national income, • income pro capite; in a country of the South without any change in the terms of trade; 2. the effect of population growth of a large country such as China on • its own terms of trade, • its own income pro capite, • the income pro capite in the South, • the income pro capite in the North, 3. the effect of China’s (large country) trade liberalization on its own welfare and on the welfare in the South and in the North. It is shown that rapid trade liberalization of a large labor-abundant country causes income divergence between trading countries: it can worsen the terms of trade for other countries in the South, while it can improve and benefit the industrial countries in the North.

"China’s Entry into the WTO: the Impact on the Economies of the Countries in the South and the North of the World"

PATRI', Stefano
2004

Abstract

The aim of this paper is to analyze the effect of population growth and of the entry of a labor-abundant country, such as China, into the World Trade Organization (WTO) on the North and on the South of the world. We shall investigate essentially three aspects: 1. the effect of population growth on • national income, • income pro capite; in a country of the South without any change in the terms of trade; 2. the effect of population growth of a large country such as China on • its own terms of trade, • its own income pro capite, • the income pro capite in the South, • the income pro capite in the North, 3. the effect of China’s (large country) trade liberalization on its own welfare and on the welfare in the South and in the North. It is shown that rapid trade liberalization of a large labor-abundant country causes income divergence between trading countries: it can worsen the terms of trade for other countries in the South, while it can improve and benefit the industrial countries in the North.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11573/66134
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