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Food Standards and Welfare: General Equilibrium Effects

Author

Listed:
  • Tao Xiang
  • Jikun Huang
  • d’Artis Kancs
  • Scott Rozelle
  • Jo Swinnen

Abstract

We develop a general equilibrium households model to analyze the effects of high standards food chains taking seriously into account market imperfections. To measure structural production changes and welfare effects on rural and urban households, our model has two types of agents, five kinds of products and four types of factors. We calibrate the model using dataset from China and do simulations through three ways: increasing world price of high standards food, increasing urban households’ preference for high standards food, and relaxing credit constraints on high standards food production. The simulation results show that how poor households are affected depends on the nature of the shocks leading to the expansion of high standards sector and the market imperfections, and whether the poor can gain through the labor market if they are excluded from high standards farming.
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Suggested Citation

  • Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    • Handle: RePEc:bla:jageco:v:63:y:2012:i:2:p:223-244
    DOI: j.1477-9552.2012.00334.x
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    Cited by:

    1. Castro N. Gichuki & Jiqin Han & Tim Njagi, 2020. "The Impact of Household Wealth on Adoption and Compliance to GLOBAL GAP Production Standards: Evidence from Smallholder farmers in Kenya," Agriculture, MDPI, vol. 10(2), pages 1-15, February.
    2. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. Swinnen, Johan & Kuijpers, Rob, 2020. "Inclusive Value Chains to Accelerate Poverty Reduction in Africa," Jobs Group Papers, Notes, and Guides 31809214, The World Bank.

    More about this item

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • Y80 - Miscellaneous Categories - - Related Disciplines - - - Related Disciplines

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