Publication

This paper examines the impact of the Free Trade Area of the Asia Pacific (FTAAP) on the national and regional economies in China using a suite of general equilibrium models. The impact on the Chinese economy of the Asia Pacific Free Trade Agreement (APFTA) is also compared with those of other forms of free trade areas (FTAs). China benefits from all three FTAs examined in the paper, with the eastern region gaining the most. It is also found that China's benefit increases along with the increase in coverage of the FTAs, that is, the APFTA has the biggest positive impact on the Chinese economy, among the three FTAs considered in this study. Sectorwise, the textile, clothing and footwear sector gains the most from the FTAAP, while the motor vehicle and parts sector loses the most.