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China's Economic Growth, Changing Comparative Advantages and Agricultural Trade

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Author Info

  • Anderson, Kym

Abstract

The rapid growth of the Chinese economy during the 1980s was accompanied by an equally rapid shift in China's comparative advantage towards light manufactures, such as textiles and clothing, at the expense of agriculture. If that economy were to resume the economic reform process that was stalled in 1988-89, its comparative advantages would move even further in that direction, following the pattern of its more industrialised neighbours. Dependence on agricultural imports - particularly feed grains, cotton and wool would rise unless domestic prices for farm products are increased substantially. Model simulation results are presented to support this conclusion (which is based on theory and historical experience) and to indicate the orders of magnitude that might be involved under various assumptions. The paper concludes with a discussion of the implications for China and its trading partners, including Australia.

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File URL: http://purl.umn.edu/12289
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Bibliographic Info

Article provided by Australian Agricultural and Resource Economics Society in its journal Review of Marketing and Agricultural Economics.

Volume (Year): 58 (1990)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:remaae:12289

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Related research

Keywords: Agricultural and Food Policy; International Relations/Trade;

References

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  1. Kym Anderson & Young-il Park, 1989. "China and the international relocation of world textile and clothing activity," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 125(1), pages 129-148, March.
  2. Garnaut, Ross, 1988. "Asia's Giant," Australian Economic Papers, Wiley Blackwell, vol. 27(51), pages 173-86, December.
  3. Anderson, Kym, 1983. "Economic Growth, Comparative Advantage and Agricultural Trade of Pacific Rim Countries," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 51(03), December.
  4. Perkins, Dwight Heald, 1988. "Reforming China's Economic System," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 601-45, June.
  5. Anderson, Kym, 1987. "On why agriculture declines with economic growth," Agricultural Economics, Blackwell, vol. 1(3), pages 195-207, October.
  6. Kym Anderson & Rod Tyers, 1986. "Economic Growth and Market Liberalisation in China: Implications for Agricultural Trade," School of Economics Working Papers 1986-03, University of Adelaide, School of Economics.
  7. Sapsford, D, 1985. "The Statistical Debate on the Net Barter Terms of Trade between Primary Commodities and Manufactures: A Comment and Some Additional Evidence," Economic Journal, Royal Economic Society, vol. 95(379), pages 781-88, September.
  8. Kym Anderson, 1990. "Urban Household Subsidies and Rural Out-Migration: The Case of China," Chinese Economies Research Centre (CERC) Working Papers 1990-03, University of Adelaide, Chinese Economies Research Centre.
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Cited by:
  1. Kevin Chen & Lian Xu & Yufeng Duan, 2000. "Ex-Post competitiveness of China's export in agri-food products: 1980-96," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 281-294.

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