IMF Working Papers

Quantifying the Spillovers from China Rebalancing Using a Multi-Sector Ricardian Trade Model

By Rui Mano

November 15, 2016

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Rui Mano. Quantifying the Spillovers from China Rebalancing Using a Multi-Sector Ricardian Trade Model, (USA: International Monetary Fund, 2016) accessed December 23, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper assesses the spillovers from different facets of China rebalancing using a calibrated Ricardian trade model that includes 41 economies, each consisting of 34 sectors. We find that China’s move up the value chain in particular has the potential for significant spillovers – on the one hand, adversely affecting industrialized economies heavily involved in the Asia value chain, while at the same time generating positive spillovers to lower and middle income countries. The model’s strength lies in endogenously capturing production value chains and international trade of goods across sectors.

Subject: Consumption, Exports, Financial sector policy and analysis, Income, International trade, National accounts, Production, Productivity, Spillovers

Keywords: Asia and Pacific, China rebalancing, Consumption, Export growth pattern, Export share, Exports, Exports contract, Goods trade channel, Income, Production value chains, Productivity, Sectoral trade, Spillovers, Trade channel, Trade model, Value chain, WP

Publication Details

  • Pages:

    38

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2016/219

  • Stock No:

    WPIEA2016219

  • ISBN:

    9781475553741

  • ISSN:

    1018-5941

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