Trade and factor market reforms in China

Abstract

The benefits of the multi-faceted liberalization of the Chinese economy can be seen in various indicators of economic development. The rate of growth of the economy, the flow of foreign investment in China, and rising quality of life are some of the indicators of gains from the liberalization process. Most of the research has focused on the role of trade reforms on the Chinese economy. There is, however, one unfinished agenda that has not been addressed adequately by policy makers as well as academia, i.e. labor-sector reforms. In this paper, we analyze the effect of labor market liberalization in China using a Computable General Equilibrium (CGE) model. Most CGE models on China using a neoc..