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Removing border protection on wheat and rice: effects on rural income and food self-sufficiency in China

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  • Mai, Yinhua

Abstract

In this paper, I use the Monash Multi-Country model – a dynamic Computable General Equilibrium model of China, Australia and the Rest of the World – to analyse the effects of removing border protection on wheat and rice in China. The analysis points to the possibility that removing border protection on wheat and rice may lead to an increase in rural income in China. This is mainly due to the following two factors. First, removing border protection on wheat and rice not only leads to a contraction in agricultural activities, but also leads to an expansion in manufacturing and services activities. Second, on average, rural households in China obtain over half of their income from manufacturing and services activities.

Suggested Citation

  • Mai, Yinhua, 2008. "Removing border protection on wheat and rice: effects on rural income and food self-sufficiency in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-19.
    • Handle: RePEc:ags:aareaj:118533
    DOI: 10.22004/ag.econ.118533
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    References listed on IDEAS

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    1. Elena Ianchovichina & Terrie Walmsley, 2005. "Impact of China's WTO Accession on East Asia," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 261-277, April.
    2. Hertel, Thomas W. & Kym Anderson & Joseph Francois & Will Martin, 2002. "Agriculture and Non-Agricultural Liberalization in the Millennium Round," GTAP Working Papers 235, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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    4. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Victoria University, Centre of Policy Studies/IMPACT Centre.
    5. Jikun Huang & Scott Rozelle & Min Chang, 2004. "Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization," The World Bank Economic Review, World Bank, vol. 18(1), pages 59-84.
    6. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Cassey, Andrew J. & Galinato, Suzette P. & Taylor, Justin L., 2012. "Environmental Regulation and Regional Economy: Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-22.
    2. Kees Krul & Peter Ho, 2017. "Alternative Approaches to Food: Community Supported Agriculture in Urban China," Sustainability, MDPI, vol. 9(5), pages 1-16, May.
    3. Dirk Godenau & Jose Juan Caceres-Hernandez & Gloria Martin-Rodriguez & Jose Ignacio Gonzalez-Gomez, 2020. "A consumption-oriented approach to measuring regional food self-sufficiency," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(5), pages 1049-1063, October.

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