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Empirical analysis of agricultural trade between EU and China: Explanation behind China's growing agrifood imports

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Author Info
Huan-Niemi, E.
Niemi, J.
Abstract

This study attempts to identify and measure quantitatively the effects of changing economic environment and trade policies on China’s agricultural imports from the EU as well as globally. The approach is to model behavioural relationships in the agricultural trade between China and the EU by using annual trade data from 1986 to 2005. The results indicate that Chinese agricultural imports are relatively inelastic to absolute price changes, but relative price changes significantly affect the market shares of EU exports due to price competition. Trade liberalisation in the form of tariff reductions is trivial in changing the quantity of China’s agricultural imports from the EU. China’s growing agrifood imports has been fuelled by rapid income growth of its population.

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Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 43962.

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Date of creation: 2008
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Handle: RePEc:ags:eaae08:43962

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Keywords: EU; China; agricultural trade; International Relations/Trade;

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References listed on IDEAS
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  1. Hendry, David F, 1986. "Econometric Modelling with Cointegrated Variables: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 201-12, August.
  2. Jean-Christophe Bureau & Antoine Bouet, Yvan Decreux, Sébastien Jean, 2005. "Multilateral agricultural trade liberalization: The contrasting fortunes of developing countries in the Doha Round," The Institute for International Integration Studies Discussion Paper Series iiisdp060, IIIS. [Downloadable!]
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  3. Carone, Giuseppe, 1996. "Modeling the U.S. demand for imports through cointegration and error correction," Journal of Policy Modeling, Elsevier, vol. 18(1), pages 1-48, February. [Downloadable!] (restricted)
  4. Harald Grethe, 2006. "Agricultural Trade Reform and the Doha Development Agenda," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 33(4), pages 591-595, December.
  5. Kym Anderson & Will Martin, 2005. "Agricultural Trade Reform and the Doha Development Agenda," The World Economy, Blackwell Publishing, vol. 28(9), pages 1301-1327, 09. [Downloadable!] (restricted)
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  6. Honma, Masayoshi, 1991. "Growth in Japan's horticultural trade with developing countries: an economic analysis of the market," Research reports 89, International Food Policy Research Institute (IFPRI). [Downloadable!]
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