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The Nature of Distortions to Agricultural Incentives in China and Implications of WTO Accession

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Author Info
Jikun Huang (Chinese Academy of Sciences)
Scott Rozelle (University of California, Davis)
Abstract

The overall goal of our paper is to understand how WTO will affect the agriculture sector in China. To accomplish this goal we have two specific objectives. First, we seek to provide measures of the distortions in China's agricultural sector at a time immediately prior to the nation's accession to WTO. Second, we seek to assess how well integrated China's markets are in order to understand which areas of the country and which segments of the farming population will likely be isolated from or affected by the changes that WTO will bring. Ultimately, with a knowledge of the size and magnitude of the impacts, researchers will be better able to being working on understanding how the policies that WTO will impose on China will change the gap between the domestic and international price and affect imports and exports, domestic production and production, income and poverty. To meet these objectives, the rest of the paper is organized as following. First, we will seek to provide a context for our analysis of the current distortions that affect China's agriculture. Second, after briefly discussing our data and way of collecting information for calculating the gap in prices between international and domestic markets, we present measures of NPRs for a set of commodities for China. The next section then discusses how these distortions should be expected to change as China implements its WTO obligations and gains access (or not) to the promises that were made to it. The fourth section of the paper then analyzes the transmission of prices through the economy. The final section discusses the implication of our findings.

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Paper provided by Department of Agricultural & Resource Economics, UC Davis in its series Department of Agricultural & Resource Economics, UC Davis, Working Paper Series with number 1001.

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Date of creation: 01 Feb 2002
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Handle: RePEc:cdl:aredav:1001

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Anderson, Kym & Peng, Chao Yang, 1998. "Feeding and fueling China in the 21st century," World Development, Elsevier, vol. 26(8), pages 1413-1429, August. [Downloadable!] (restricted)
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  1. Ianchovichina, Elena & Walmsley, Terrie, 2003. "The impact of China's WTO accession on East Asia," Policy Research Working Paper Series 3109, The World Bank. [Downloadable!]
  2. Jikun Huang & Scott Rozelle & Yuping Xie, 2003. "Distortions at the Border; Integration Inland: Assessing the Effect of WTO Accession on China's Agriculture," Journal of Chinese Economic and Business Studies, Taylor and Francis Journals, vol. 1(1), pages 97-116, January. [Downloadable!] (restricted)
  3. Ianchovichina, Elena & Martin, William, 2003. "Economic impacts of China's accession to the World Trade Organization," Policy Research Working Paper Series 3053, The World Bank. [Downloadable!]
  4. Ianchovichina, Elena, 2002. "Trade policy analysis in the presence of duty drawbacks," Policy Research Working Paper Series 3312, The World Bank. [Downloadable!]
  5. Shalizi, Zmarak, 2006. "Addressing China's growing water shortages and associated social and environmental consequences," Policy Research Working Paper Series 3895, The World Bank. [Downloadable!]
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