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Changes in trade and domestic distortions affecting China's agriculture

Author

Listed:
  • Huang, Jikun
  • Liu, Yu
  • Martin, Will
  • Rozelle, Scott

Abstract

This paper assesses the implications of China's trade and domestic policies for incentives to producers in China. It uses a price comparison methodology (nominal rates of assistance--at the border and the farmgate), with adjustments for exchange rate distortions in the first part of the sample period (1981-1994). On average, distortions to agricultural incentives have been reduced. In the early 1980s, on average, China's domestic prices were far below international prices. There were substantial variations, however, between imported (which were being protected) and exported goods. During the 1980s and 1990s the gap between domestic and international prices for both imports and exports narrowed initially mainly due to the elimination of domestic policy distortions. Between the mid-1990s and 2004, trade liberalization policy furthered narrowed the gap between world and China farmgate prices. By the mid-2000s, China's agriculture was operating with only small price distortions.

Suggested Citation

  • Huang, Jikun & Liu, Yu & Martin, Will & Rozelle, Scott, 2009. "Changes in trade and domestic distortions affecting China's agriculture," Food Policy, Elsevier, vol. 34(5), pages 407-416, October.
  • Handle: RePEc:eee:jfpoli:v:34:y:2009:i:5:p:407-416
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:8:y:2016:i:3:p:183:d:64865 is not listed on IDEAS
    2. Fan, Linlin & Nogueira, Lia & Baylis, Katherine R., 2013. "Agricultural Market Reforms and Nutritional Transition in Rural China," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150203, Agricultural and Applied Economics Association.
    3. Briones Alonso, Elena & Swinnen, Johan, 2016. "Who are the producers and consumers? Value chains and food policy effects in the wheat sector in Pakistan," Food Policy, Elsevier, vol. 61(C), pages 40-58.
    4. Ito, Junichi & Ni, Jing, 2013. "Capital deepening, land use policy, and self-sufficiency in China's grain sector," China Economic Review, Elsevier, vol. 24(C), pages 95-107.
    5. Dingyang Zhou & Hirotaka Matsuda & Yuji Hara & Kazuhiko Takeuchi, 2012. "Potential and observed food flows in a Chinese city: a case study of Tianjin," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(4), pages 481-492, December.
    6. David Dawe, 2014. "Transmission of global food prices, supply response and impacts on the poor," Chapters,in: Handbook on Food, chapter 5, pages 100-121 Edward Elgar Publishing.
    7. Huang, Jikun & Wu, Yunhua & Yang, Zhijian & Rozelle, Scott & Fabiosa, Jacinto & Dong, Fengxia, 2012. "Marketing China's milk: A case study of the sales activity of dairy farmers in greater Beijing," China Economic Review, Elsevier, vol. 23(3), pages 675-689.
    8. Jikun Huang & Jun Zhang & Scott Rozelle, 2013. "The Political Economy of Food Pricing Policy in China," Working Papers id:5317, eSocialSciences.
    9. Yi, Fujin & Sun, Dingqiang & Zhou, Yingheng, 2015. "Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China," Food Policy, Elsevier, vol. 50(C), pages 114-124.
    10. Rada, Nicholas & Wang, Chenggang & Qin, Lijian, 2015. "Subsidy or market reform? Rethinking China’s farm consolidation strategy," Food Policy, Elsevier, vol. 57(C), pages 93-103.
    11. Yi, Fujin & Sun, Dingqiang, 2014. "Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169779, Agricultural and Applied Economics Association.

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