The Effect of Total Factor Productivity in China

1
The Effect of Total Factor Productivity in
Chinas Accession to WTO

• Yiseok Hong
• Seokyeong University

2
Chinas Accession to WTO
CHN2005
Real GDP Capital Stocks Welfare(US million)
Namerica -0.23 -0.6 (1,262.76)
Weurope -0.1 -0.45 7,257.51
Japan -0.19 -0.49 7,837.46
CHN_TWN 5.8 8.52 91,650.23
OthNICs 0.14 0.28 6,225.04
SEA -1.07 -1.56 (5,114.52)
SoAsia -0.4 -0.99 (2,895.18)
ROW -0.34 -0.73 (6,673.00)
3
MFA/ATC
CHN2005
Real GDP Capital Stocks Welfare(US million)
Namerica -0.23 -0.6 (1,297.20)
Weurope -0.1 -0.45 7,220.55
Japan -0.19 -0.49 7,713.68
CHN_TWN 5.75 8.47 91,441.38
OthNICs 0.16 0.29 6,244.38
SEA -1.05 -1.54 (5,056.86)
SoAsia -0.39 -0.97 (2,866.74)
ROW -0.34 -0.72 (6,686.98)
4
TFP Services 4
TFP Services 4
Real GDP Capital Stocks Welfare(US million)
Namerica -0.29 -0.74 (5,477.23)
Weurope -0.17 -0.61 1,481.93
Japan -0.28 -0.7 5,255.40
CHN_TWN 10.34 12.92 253,108.28
OthNICs -0.35 -0.71 995.94
SEA -0.81 -1.23 (2,929.60)
SoAsia -0.33 -0.79 (1,518.02)
ROW -0.4 -0.84 (8,420.01)
5
Welfare Decomposition
Welfare Decomposition China Namerica
CHN2005 SFG2005 TFP Services 4 TFP Services 4
Total Welfare 91,650.23 91,441.38 253,108.28 (5,477.23)
Allocative efficiency 87,391.34 87,285.95 73,630.94 (2,378.77)
Net foreign equity 17,979.71 (9,738.67) 50,352.29 (12,595.39)

Terms of trade (13,870.33) 13,743.40 (9,676.22) 7,506.22
Technology 0.00 0.00 137,846.56 0.00
Non-accumulable endowments 0.00 0.00 0.00 0.00
Capital goods effect 149.51 150.70 954.72 1,990.74
Population effect 0.00 0.00 0.00 0.00
6
Net Income by owning Equity
Net Income by owning Equity

TempCoeff 1 NAmerica 4 CHN_TWN
1 qk -24199.62 128312.14
2 pop 0 0
3 yqht 2095.16 -28847.94
4 yqtf 9621.26 -47171.29
Total -12483.2 52292.91