Long-run impacts of China's WTO accession on farm-nonfarm income inequality and rural poverty
AbstractMany fear China's accession to the World Trade Organization (WTO) will impoverish its rural people by way of greater import competition in its agricultural markets. Anderson, Huang, and Ianchovichina explore that possibility bearing in mind that, even if producer prices of some (land-intensive) farm products fall, prices of other (labor-intensive) farm products could rise. Also, the removal of restrictions on exports of textiles and clothing could boost town and village enterprises, so demand for unskilled labor for nonfarm work in rural areas may grow even if demand for farm labor in aggregate falls. New estimates, from the global economywide numerical simulation model known as GTAP, of the likely changes in agricultural and other product prices as a result of WTO accession are drawn on to examine empirically the factor reward implications of China's WTO accession. The results suggest farm-nonfarm and Western-Eastern income inequality may well rise in China but rural-urban income inequality need not. The authors conclude with some policy suggestions for alleviating any pockets of farm household poverty that may emerge as a result of WTO accession.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3052.
Date of creation: 31 May 2003
Date of revision:
Economic Theory&Research; Agricultural Knowledge&Information Systems; Labor Policies; Environmental Economics&Policies; Markets and Market Access; Environmental Economics&Policies; Crops&Crop Management Systems; Economic Theory&Research; World Trade Organization; Livestock&Animal Husbandry;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
- NEP-SEA-2004-09-12 (South East Asia)
- NEP-TRA-2004-09-12 (Transition Economics)
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.:
- Anderson, Kym, 1993.
"Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries,"
CEPR Discussion Papers
789, C.E.P.R. Discussion Papers.
- Anderson, Kym, 1995. "Lobbying Incentives and the Pattern of Protection in Rich and Poor Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 43(2), pages 401-23, January.
- Kala Krishna & Cemile Yavas, 2002. "When Does Trade Hurt? Market, Transition and Developing Economies," NBER Working Papers 8995, National Bureau of Economic Research, Inc.
- W. Jill Harrison & K.R. Pearson, 1994.
"Computing Solutions for Large General Equilibrium Models Using GEMPACK,"
Centre of Policy Studies/IMPACT Centre Working Papers
ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Society for Computational Economics, vol. 9(2), pages 83-127, May.
- Kanbur, Ravi & Zhang, Xiaobo, 2001.
"Fifty Years of Regional Inequality in China: A Journey through Revolution, Reform and Openness,"
CEPR Discussion Papers
2887, C.E.P.R. Discussion Papers.
- Kanbur, Ravi & Zhang, Xiaobo, 2001. "Fifty Years Of Regional Inequality In China: A Journey Through Revolution, Reform And Openness," Working Papers 7236, Cornell University, Department of Applied Economics and Management.
- Sicular, Terry, 1988. "Plan and Market in China's Agricultural Commerce," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 283-307, April.
- Scott Rozelle & Albert Park & Jikun Huang & Hehui Jin, 1997. "Liberalization and Rural Market Integration in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 635-642.
- Hazell, Peter B. R. & Haddad, Lawrence James, 2001.
"Agricultural research and poverty reduction,"
2020 vision briefs
70, International Food Policy Research Institute (IFPRI).
- Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2001.
"How agricultural research affects urban poverty in developing countries: the case of China,"
EPTD discussion papers
83, International Food Policy Research Institute (IFPRI).
- Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2001. "How Agricultural Research Affects Urban Poverty In Developing Countries? The Case Of China," 2001 Annual meeting, August 5-8, Chicago, IL 20636, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 29-57.
- Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
- Anderson,Kym (ed.), 1992. "The New Silk Roads," Cambridge Books, Cambridge University Press, number 9780521392785, November.
- Will Martin, 2001. "Implications of reform and WTO accession for China' agricultural policies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 717-742, November.
- Anderson, Kym & Yao, Shunli, 2002.
"China, GMOs and World Trade in Agricultural and Textile Products,"
CEPR Discussion Papers
3171, C.E.P.R. Discussion Papers.
- Kym Anderson & Shunli Yao, 2003. "China, Gmos And World Trade In Agricultural And Textile Products," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 157-169, 06.
- Winters, L. Alan, 2000. "Trade, Trade Policy and Poverty: What Are The Links?," CEPR Discussion Papers 2382, C.E.P.R. Discussion Papers.
- 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.
- Elena Ianchovichina & Will Martin, 2004. "Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 3-27.
- Terry Sicular & Yaohui Zhao, 2002. "Earnings and Labor Mobility in Rural China: Implications for China's WTO Entry," University of Western Ontario, Economic Policy Research Institute Working Papers 20028, University of Western Ontario, Economic Policy Research Institute.
- Shalizi, Zmarak, 2006. "Addressing China's growing water shortages and associated social and environmental consequences," Policy Research Working Paper Series 3895, The World Bank.
- Zhai, Fan & Hertel, Thomas & Wang, Zhi, 2003.
"Labor Market Distortions, Rural-Urban Inequality and the Opening of China’s Economy,"
GTAP Working Papers
1323, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Hertel, Thomas & Zhai, Fan, 2006. "Labor market distortions, rural-urban inequality and the opening of China's economy," Economic Modelling, Elsevier, vol. 23(1), pages 76-109, January.
- Hertel, Thomas & Zhai, Fan, 2004. "Labor market distortions, rural-urban inequality, and the opening of China's economy," Policy Research Working Paper Series 3455, The World Bank.
- McCalla, Alex F., 2003. "Liberalizing Agricultural Trade: Will It Ever Be a Reality?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December.
- Li, Yao, 2008. "Industrial Agglomeration and Wage Inequality in China," MPRA Paper 11426, University Library of Munich, Germany, revised Oct 2008.
- Duncan, Ronald C., 2004. "Achieving food security in China: Implications of WTO accession," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58402, Australian Agricultural and Resource Economics Society.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.