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The effect of liberation on economic growth of China

Write 32 pages with APA style on The effect of liberation on economic growth of China. After setting up of WTO with an aim to enhance international trade to a large extent by demolishing all kinds of trade barriers imposed by individual countries, the member states of WTO has been making extensive efforts to liberalize their trade with each other and with other countries as well. China is not an exception. In the china, efforts to liberalise trade by reducing different trade barriers have been started to be undertaken since the initiation of economic reform in this country during the decade of 1970s.Theory suggests a close link between foreign trade and economic growth. There have been a large number of theoretical and empirical works, which have tried to examine the link between international trade and economic growth. While a number of studies have found a positive association between enhanced international trade and economic growth, a large number of studies have also refuted the claim on the basis of their research that international trade facilitates economic growth. (Edwards, 1993)In the present study the case of China will be taken under consideration, as china has become one of the most powerful and rapidly growing economies in the present world. It would be very interesting to see how trade liberalization has affected economic growth in China. For this the period of 1970-2007 will be taken under consideration, as it was only in the decade of 1970’s (late 1970’s) when China put emphasis on the issue of trade liberalization as one of its economic reform policies. However, in this context, one thing should be mentioned that trade liberalization got a huge boost in China during 1990s as it was making its path easy to became a member of WTO during this period.Trade liberalization basically implies reduction in the tariff rates and removal of non-tariff barriers. Since late 1970s china has started to undertake several measures of trade liberalization to increase its foreign trade.

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