NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Comparing Alternative China and US Arrangements with CPTPP

Chunding Li, Xin Lin, John Whalley

NBER Working Paper No. 26877
Issued in March 2020
NBER Program(s):International Trade and Investment

This paper builds a 29-country numerical general equilibrium model with inside money and trade cost to simulate and compare the effects of China and the US taking part in the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), which is a high standard mega regional trade agreement. Comparison results show that China will benefit CPTPP member countries more than the US on trade, GDP, and manufacturing employment. China’s entering the CPTPP can also benefit most non-member countries on GDP and manufacturing employment. By joining, the US will benefit the whole world more, as the US economic scale is larger than that of China. Our simulation results reveal that China will be more welcomed to the CPTPP by member countries.

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Document Object Identifier (DOI): 10.3386/w26877

 
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