TITLE:
Research on the Impact of RCEP on China’s Manufacturing Output and Trade: Based on GTAP Simulation
AUTHORS:
Dan Ling, Caiyun Lv
KEYWORDS:
RCEP, China’s Manufacturing, GTAP, Tariff Concession
JOURNAL NAME:
iBusiness,
Vol.14 No.2,
May
11,
2022
ABSTRACT: The signing of RCEP is a milestone for regional
economic integration in East Asia. This paper aims to seize the opportunities
brought by RCEP to China’s manufacturing industry and promote the high-quality
development of China’s manufacturing industry. Therefore, the paper sets up
three simulation scenarios, uses GTAP10 to simulate the impact of RCEP on
China’s subdivided manufacturing industry, and further explores the impact of
RCEP on China’s manufacturing industry with different technical levels. The
results show that: 1) The reduction of intra-regional trade costs under tariff
concessions will promote the increase of
output, import and export trade in most of the manufacturing sectors in
China; 2) When the tariff is zero, it will obviously promote the import and
export of low-tech and medium-high-tech industries in the region. In order to
better grasp the benefits of RCEP, we need
national policy support and the improvement of the core competitiveness
of enterprises.