China in 2005: Implications for the Rest of the Wo r l d

Abstract

This paper analyzes the impact of continued rapid, growth in china on her trading partners using a multiregion, applied general equili,brium model.con_ trary to conuentional wisdom, we find that most deueloping countries benefit from china's growth.Product dffirentiation plays a key role in this flnding.systematic analysis of these welfare gains shows that, as exfected,, simple terms of trade calculations based on net trade positions and aaerage world price changes Predict a loss for the deueloping countries.Howeaer, with the exceptions of south Asia and rhailand, this /oss l's oaershadowed, by a positiue rnnue_

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