Modeling Synthesis in Application to Endogenized Trade Policy in China

This paper formulates single and multi-sector-based models as a modeling system and protracts their evolutional paths in a manner that implements modeling synthesis in political demand side pursuant to orthodox model of international trade theory and anatomy of institutional economics, where it is emphasized that implication of disparity in both cross-sectional capacity of benefit expression and cross-country governance to implement trade policy on agent’s behavioral performance affecting policy. And the model endogenizing trade policy is inferred to deal with constraints of both negotiated and nonnegotiated equilibrium through CES and VES model, and endogenity of independent variables in the functions for both political supply and demand side is ensured with modeling synthesis. Furthermore, a few of policy implications for improvements of mechanism implementing trade policy are offered according to ensuing economic implications in the models. KEYWORD Trade Policy Econometric Model Political Economy Approach