The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, China

Abstract Taiwan, China’s labour market faces numerous challenges. However, previous studies have given limited attention to the impact of regional trade agreements on Taiwan’s labour force. This study examines the impact of the Regional Comprehensive Economic Partnership (RCEP) on Taiwan’s labour ma...

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Main Authors: Cheyuan Liu, Jianrui Zhou, Wen Wen, Fangzhou Liu, Chunyu Zhang
Format: Article
Language:English
Published: Springer Nature 2025-04-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-04864-2
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author Cheyuan Liu
Jianrui Zhou
Wen Wen
Fangzhou Liu
Chunyu Zhang
author_facet Cheyuan Liu
Jianrui Zhou
Wen Wen
Fangzhou Liu
Chunyu Zhang
author_sort Cheyuan Liu
collection DOAJ
description Abstract Taiwan, China’s labour market faces numerous challenges. However, previous studies have given limited attention to the impact of regional trade agreements on Taiwan’s labour force. This study examines the impact of the Regional Comprehensive Economic Partnership (RCEP) on Taiwan’s labour market by assessing its effects on economic growth, labour demand, and wages. Utilising the Global Trade Analysis Project (GTAP) 10.0 database, this study applies the GTAP model to assess the effects of the RCEP on Taiwan’s labour force. The analysis uses data from 2014 that is dynamically projected to 2023. The findings suggest that the RCEP has a negative impact on both labour demand and wages in Taiwan. However, the effects vary across industries and skill levels. In sectors with sensitive regulations, labour employment is positively affected by ‘reverse trade diversion.’ Unskilled labour is more adversely impacted by the RCEP than skilled labour. Furthermore, the RCEP negatively influences Taiwan’s economic growth, including GDP, social welfare, and trade (both imports and exports). Taiwan’s accession to RCEP could reverse these negative impacts. These findings offer valuable insights into the effects of trade liberalisation on the labour market, highlight the importance of regional economic cooperation, and provide essential information for Taiwan’s economic adaptation strategies in the context of regional economic integration.
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spelling doaj-art-869ca57f74b84eee9858df4d8d7fc4792025-08-20T02:55:25ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-04-0112111110.1057/s41599-025-04864-2The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, ChinaCheyuan Liu0Jianrui Zhou1Wen Wen2Fangzhou Liu3Chunyu Zhang4School of Economics and Management, Guangxi Normal UniversitySchool of Economics and Management, Guangxi Normal UniversitySchool of Politics and Public Administration, Guangxi Normal UniversitySchool of Economics and Management, Guangxi Normal UniversitySchool of Economics and Management, Guangxi Normal UniversityAbstract Taiwan, China’s labour market faces numerous challenges. However, previous studies have given limited attention to the impact of regional trade agreements on Taiwan’s labour force. This study examines the impact of the Regional Comprehensive Economic Partnership (RCEP) on Taiwan’s labour market by assessing its effects on economic growth, labour demand, and wages. Utilising the Global Trade Analysis Project (GTAP) 10.0 database, this study applies the GTAP model to assess the effects of the RCEP on Taiwan’s labour force. The analysis uses data from 2014 that is dynamically projected to 2023. The findings suggest that the RCEP has a negative impact on both labour demand and wages in Taiwan. However, the effects vary across industries and skill levels. In sectors with sensitive regulations, labour employment is positively affected by ‘reverse trade diversion.’ Unskilled labour is more adversely impacted by the RCEP than skilled labour. Furthermore, the RCEP negatively influences Taiwan’s economic growth, including GDP, social welfare, and trade (both imports and exports). Taiwan’s accession to RCEP could reverse these negative impacts. These findings offer valuable insights into the effects of trade liberalisation on the labour market, highlight the importance of regional economic cooperation, and provide essential information for Taiwan’s economic adaptation strategies in the context of regional economic integration.https://doi.org/10.1057/s41599-025-04864-2
spellingShingle Cheyuan Liu
Jianrui Zhou
Wen Wen
Fangzhou Liu
Chunyu Zhang
The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, China
Humanities & Social Sciences Communications
title The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, China
title_full The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, China
title_fullStr The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, China
title_full_unstemmed The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, China
title_short The impact of RCEP on labour markets in non-member economies: evidence from Taiwan, China
title_sort impact of rcep on labour markets in non member economies evidence from taiwan china
url https://doi.org/10.1057/s41599-025-04864-2
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