Francois, Joseph F.Spinanger, Dean2014-02-242014-02-242004-01World Bank Economic Reviewhttps://hdl.handle.net/10986/17137This article is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China's motor vehicle sector. The analysis is conducted using a 23 sector-25 region computable general equilibrium model. Regulatory reform and internal restructuring are found to be critical. Restructuring is represented by a cost reduction following from consolidation and rationalization that moves costs toward global norms. Without restructuring, WTO accession means a surge of final imports, though imports of parts could well fall as production moves offshore. However, with restructuring, the final assembly industry can be made competitive by world standards, with a strengthened position for the industry.en-USCC BY-NC-ND 3.0 IGOABSENCE OF COMPETITIONAGRICULTUREAIRAPPARELAUTO INDUSTRYAUTO_INDUSTRYAUTOMOBILEAUTOMOBILE INDUSTRYAUTOMOBILE PARTSAUTOMOBILE PRODUCTIONAUTOMOBILESAUTOMOTIVE INDUSTRYAUTOMOTIVE SECTORAVERAGE TARIFFBARRIERS TO TRADEBENCHMARKBUSESCAPITAL FLOWSCARCAR COMPANIESCARSCHANGES IN TRADECOMPONENT PARTSCONSTANT ELASTICITY OF SUBSTITUTIONDEVELOPMENT ECONOMICSDOMESTIC COMPETITIONDOMESTIC INDUSTRYDOMESTIC MARKETDOMESTIC PRODUCTIONECONOMIC POLICIESECONOMIC POLICYELASTICITYELASTICITY OF SUBSTITUTIONENGINEEXPORT ORIENTATIONEXPORT SHAREEXPORT SHARESEXPORTSFACTORS OF PRODUCTIONFOREIGN COMPANIESFOREIGN COMPETITIONFOREIGN FIRMSFOREIGN INVESTMENTFOREIGN OWNERSHIPFOREIGN PRODUCERFOREIGN PRODUCERSFOREIGN PRODUCTIONFOREIGN SOURCESFRAMEWORKFREE TRADEFREE TRADE AGREEMENTGENERAL EQUILIBRIUMGENERAL EQUILIBRIUM MODELGLOBAL INTEGRATIONGLOBAL TRADEGLOBAL TRADE ANALYSISGNPGRAVITY EQUATIONGRAVITY ESTIMATESHIGH TARIFFSIMPERFECT COMPETITIONIMPERFECT SUBSTITUTESIMPORT COMPETITIONIMPORT PROTECTIONIMPORT QUOTASIMPORT RESTRICTIONSIMPORT SHAREIMPORT SUBSTITUTIONIMPORTSINCOME LEVELSINCREASING RETURNSINDUSTRIAL POLICIESINDUSTRIAL POLICYINDUSTRIALIZATIONINJURYINTERMEDIATE INPUTSINTERNATIONAL TRADEINTERNATIONAL TRADE COMMISSIONMARGINAL COSTMARKET ACCESSMARKET SEGMENTATIONMARKET SHAREMETAL PRODUCTSMOST FAVORED NATIONMOTOR CARMOTOR VEHICLEMOTOR VEHICLE INDUSTRYMOTOR VEHICLE PRODUCTIONMOTOR VEHICLESMOTORCYCLESMULTILATERAL TRADEMULTILATERAL TRADE NEGOTIATIONSPARKINGPASSENGERPASSENGER CARSPER CAPITA INCOMEPOLITICAL ECONOMYPRODUCTION EFFICIENCYPROTECTIONISMPURCHASING POWERQUOTASREGULATORY REGIMESRETAIL TRADEROADSSTEELSTRUCTURESTARIFF RATESTARIFF REDUCTIONSTARIFF SCHEDULETARIFF SCHEDULESTAXISTECHNOLOGY TRANSFERTRADE BARRIERSTRADE DEVELOPMENTTRADE FLOWSTRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADE POLICYTRADE RESTRICTIONSTRANSPORTTRANSPORT SERVICESTRANSPORTATIONTRANSPORTATION SERVICESTRUCKSURUGUAY ROUNDVALUE ADDEDVEHICLE MANUFACTURERSVEHICLE MANUFACTURINGVEHICLE PRODUCTIONVEHICLESWELFARE GAINSWORLD PRICESWORLD TRADEWORLD TRADE ORGANIZATIONWTOJournal ArticleWorld Bank10.1596/17137