ABSTRACT
This article draw upon a 29-country numerical general equilibrium model with trade cost and endogenous trade imbalance to simulate China’s welfare gain from negotiating mega-regional trade agreements (mega-RTAs). We introduce elasticity of substitution distributions instead of normally definite values in the model and generate a distribution of impact results ranging among some specific intervals, which injects a new kind of effect presentation style to existing literature. The results of our article reveal that China will gain from all undergoing negotiation mega-RTAs we mentioned in this article, comparatively Regional Comprehensive Economic Partnership will benefit China the most.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 The RCEP has 16 country members, which are 10 ASEAN countries, Australia, China, India, Japan, South Korea and New Zealand.
2 Its member countries include China, Japan and South Korea.
3 It has 11 member countries which are China and 10 ASEAN countries.
4 It has seven member countries which are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates and China.
5 It includes all 21 APEC member countries.
6 The method is to take the ratio of bilateral trade flows over local trade, scaled to some parameter values, and then use a measure that capture all barriers.