Optimal Tariff and Endogenous Drivers for Trade Liberalization

Trade liberalization requires institutional coordination and openness,and is driven by a multitude of factors.This paper simulates endogenous optimal tariffs under different model structures to uncover the underlying drivers of trade liberalization.Parametric calibration and simulation methods based on the numeric general equilibrium model are employed to estimate the optimal tariff rates of countries with and without trade retaliation.Then,near-reality assumptions are added into the standard general equilibrium model structure,including the cross-border capital flow,multi-country assumption and trade cost,to simulate decreasing optimal tariff rates.The simulation results suggest that world economic development has increased the economic ties and interdependence among nations,making trade liberalization an endogenous optimal choice.The backlash against globalization in recent years is motivated by short-term factors,but will not persist in the long run since it goes against the law of economic growth and socio-economic development.

Tentative tariff rate for partial import and export products adjusted

The tentative tariff rate for partial import and export products was adjusted since November 1^(st) of 2006.Total 58 imported commodities will be imposed lower tentative

Cumulative Tariff Cost Rate and Structure in the Global Value Chain:A Theoretical and Empirical Study

This paper constructs a more unified measurement framework from the perspective of the Leontief inverse matrix and Ghosh inverse matrix(Ghosh).At the same time,referring to the four-term decomposition method of Leontief inverse matrix in Muradov(2016),this paper analyzes the structural decomposition of the cumulative tariff cost rate.Results show that(1)Overall,from 2000 to 2017,China's cumulative tariff cost rate,direct tariff cost rate,and multi-stage tariff cost rate all showed a downward trend,and the decline was greater than that of other countries(regions).China has strictly fulflled its WTO accession commitments and has greatly reduced the tariff rate on imported intermediate goods.(2)With China's deep participation in the global value chain,the amplification effect of China's tariffs has increased from 2.57 in 2000 to 3.17 in 2017,and there is a certain degree of"amplification effect"(above 1.5)in tariffs in all countries in the world.(3)From the perspective of the contribution rate of various countries in the world,China contributes the most to the global cumulative tariff cost rate,which is due to the complexity of the global production network structure,rather than the excessively high tariff rate imposed by China on imported intermediate goods.In terms of policy implications,if China did not take the initiative to reduce tariffs,the structural changes in the global production network would lead to a larger global cumulative tariff cost rate.