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Type: Journal article
Title: Regulated efficiency, World Trade Organization accession, and the motor vehicle sector in China
Author: Francois, J.
Spinanger, D.
Citation: World Bank Economic Review, 2004; 18(1):85-104
Publisher: World Bank Publications
Issue Date: 2004
ISSN: 0258-6770
Statement of
Joseph F. Francois and Dean Spinanger
Abstract: 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.
Rights: © The International Bank for Reconstruction and Development
RMID: 0020102268
DOI: 10.1093/wber/lhh034
Appears in Collections:Economics publications

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