Research on the effects of WTO accession on China's economic growth: Path analysis and empirical study

Abstract

Purpose

The purpose of this paper is to measure the effects of WTO accession on the economic growth of China, and the paths of those effects.

Design/methodology/approach

This article carries out a theoretical and empirical analysis on the effect on China's economic growth from WTO accession. First is about the theoretical analysis of the paths of those effects which WTO accession has on China's economic growth. Next is to make empirical test about the effects through dummy variable regression and cross variable analysis.

Findings

WTO accession has a remarkable and a positive effect on China's economic growth through the following specific paths, i.e. foreign trade path, economic system reform path and FDI path. But so far entry into WTO has not positively influenced China's economic growth through technological innovation.

Originality/value

Based on the theoretical and empirical analysis, this article puts forward relative policies and suggestions on what China should do in the future.

Citation

Zhiming, Z., Xin, Z. and Riming, C. (2013), "Research on the effects of WTO accession on China's economic growth: Path analysis and empirical study", Journal of Chinese Economic and Foreign Trade Studies, Vol. 6 No. 2, pp. 70-84. https://doi.org/10.1108/JCEFTS-04-2013-0018