Case Study on WTO and China's Economy: Issue 1

Author: Sheng Hong, Chen Xian
Publisher:
Publish Date: 2007-01-01
Features: China's entry into the WTO is not only an affirmation of free trade theory but also disrupts the balance of the existing global economic system, bringing about a series of far-reaching consequences. These consequences go beyond the welfare gains from comparative advantage, presenting phenomena that traditional trade theory cannot explain. They also extend beyond the scope of trade dividends, affecting China's institutional arrangements, those of its trading partners, and the international trade order. Only through the methods of political economy and institutional economics can these consequences be explained. The authors' Case Studies on WTO and China's Economy is the culmination of a large-scale research project jointly organized by the Beijing Tian'e Institute of Economics and the International Economics and Management College of Shanghai University. Through the investigation and description of specific cases, the study outlines the significant impacts of major changes in trade rules on China's economic and legal systems. It strives to reveal the changes in efficiency and interest structures across different economic sectors since China joined the WTO, how enhanced economic interactions with other countries have led to shifts in China's institutions and international economic rules, and the pros and cons of these changes. These case studies and their economic implications can not only contribute to theoretical advancements in economics but also offer recommendations for institutional and policy improvements.