IDEAS home Printed from https://ideas.repec.org/a/eme/caerpp/v2y2010i3p345-355.html

The diminishing influences of agricultural output changes on general price changes in China

Author

Listed:
  • Xiaoyun Liu
  • Wanchun Luo
  • Xuefeng Mao
  • Xiuqing Wang
  • Xian Xin

Abstract

Purpose - The paper aims to assess the impact of agricultural output changes on the general price level over time with China as an example. Design/methodology/approach - A simple numerical global general equilibrium (GE) model of two regions (China and the rest of the world) and three commodities (agriculture, manufacturing goods, and services) is used to assess the impacts of agricultural output changes on the overall economy price changes. The numerical GE model of this paper consists of production, final consumption, and market clear conditions. The results are generated with the GE model calibrated to aggregated China's input‐output tables of 1987, 1997, and 2005. Findings - The results suggest that China witnessed a declining influence of agricultural output changes on general price changes. The contribution of given agricultural output change on the general price change in 2005 was merely less than 60 percent of that in 1987, which in turn implies that macro policies targeting to curb general inflation via boosting agricultural output will be less effective as those of 20 years ago. Practical implications - China's policy makers should rely less and less on promoting agricultural output policies to fight against general inflation and should resort to non‐agricultural policies. Originality/value - The paper argues that the influence of agriculture on the China's general price indices has been weakening along with China's economic development with a numerical GE model calibrated to aggregated China's input‐output tables of 1987, 1997, and 2005.

Suggested Citation

  • Xiaoyun Liu & Wanchun Luo & Xuefeng Mao & Xiuqing Wang & Xian Xin, 2010. "The diminishing influences of agricultural output changes on general price changes in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(3), pages 345-355, September.
    • Handle: RePEc:eme:caerpp:v:2:y:2010:i:3:p:345-355
    DOI: 10.1108/17561371011078453
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/17561371011078453/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/17561371011078453/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/17561371011078453?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ardeni, Pier Giorgio & Freebairn, John, 2002. "The macroeconomics of agriculture," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 28, pages 1455-1485, Elsevier.
    2. Xiwen Chen, 2009. "Review of China's agricultural and rural development: policy changes and current issues," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(2), pages 121-135, January.
    3. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chan, Steven & Han, Gaofeng & Zhang, Wenlang, 2016. "How strong are the linkages between real estate and other sectors in China?," Research in International Business and Finance, Elsevier, vol. 36(C), pages 52-72.
    2. Wenlang Zhang & Gaofeng Han & Steven Chan, 2014. "How Strong are the Linkages between Real Estate and Other Sectors in China?," Working Papers 112014, Hong Kong Institute for Monetary Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhangyue Zhou, 2010. "Achieving food security in China: past three decades and beyond," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(3), pages 251-275, September.
    2. Wei, Shang-Jin & Wu, Yi, 2001. "Globalization and Inequality: Evidence from within China," CEPR Discussion Papers 3088, Centre for Economic Policy Research.
    3. Deininger, Klaus, 1995. "Collective agricultural production: A solution for transition economies?," World Development, Elsevier, vol. 23(8), pages 1317-1334, August.
    4. Yaqin He & Brian J. Revell & Bofeng Leng & Zhongchao Feng, 2017. "The Effects of Weather on Oilseed Rape (OSR) Yield in China: Future Implications of Climate Change," Sustainability, MDPI, vol. 9(3), pages 1-14, March.
    5. Wang, Hui & Riedinger, Jeffrey & Jin, Songqing, 2015. "Land documents, tenure security and land rental development: Panel evidence from China," China Economic Review, Elsevier, vol. 36(C), pages 220-235.
    6. Aragón, Fernando M., 2015. "Do better property rights improve local income?: Evidence from First Nations' treaties," Journal of Development Economics, Elsevier, vol. 116(C), pages 43-56.
    7. Justin Lin & Peilin Liu, 2006. "Economic Development Strategy, Openness and Rural Poverty: A Framework and China's Experiences," WIDER Working Paper Series RP2006-43, World Institute for Development Economic Research (UNU-WIDER).
    8. Julie Wilk & Mattias Hjerpe & Wei Yang & Hua Fan, 2015. "Farm-scale adaptation under extreme climate and rapid economic transition," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(3), pages 393-407, June.
    9. Siami-Namini, Sima & Hudson, Darren & Trindade, A. Alexandre & Lyford, Conrad, "undated". "Commodity Prices, Monetary Policy and the Taylor Rule," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266719, Southern Agricultural Economics Association.
    10. Chih-HAI YANG & WU Leah & Hui-Lin LIN, 2010. "Analysis of total-factor cultivated land efficiency in China's agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(5), pages 231-242.
    11. Jieming Zhu, 2005. "A Transitional Institution for the Emerging Land Market in Urban China," Urban Studies, Urban Studies Journal Limited, vol. 42(8), pages 1369-1390, July.
    12. Vorotnikova, Ekaterina & Seale, James, "undated". "Land Allocation Dynamics in China among Five Top Staple Crops: Corn, Soybeans, Wheat, Rice, and Cotton from 1985-2009," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162539, Southern Agricultural Economics Association.
    13. Wang, Yong, 2015. "A model of sequential reforms and economic convergence: The case of China," China Economic Review, Elsevier, vol. 32(C), pages 1-26.
    14. Deininger, Klaus & Jin, Songqing & Berhanu, Adenw & Samuel, Gebre-Selassie, 2005. "Mechanisms for Land Transfer in Ethiopia: implications for Efficiency, Equity and Non-Farm Development," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 10(01), pages 1-98, May.
    15. Bao, Xiaojia & Galiani, Sebastian & Li, Kai & Long, Cheryl Xiaoning, 2023. "Where have all the children gone? An empirical study of child abandonment and abduction in China," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 95-119.
    16. Fan, Shenggen, 1997. "How fast have China's agricultural production and productivity really been growing?: new measurement and evidence," EPTD discussion papers 30, International Food Policy Research Institute (IFPRI).
    17. Shifa, Abdulaziz B., "undated". "Does agricultural growth have a causal effect on manufacturing growth?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116003, European Association of Agricultural Economists.
    18. Feng, Shuaizhang & Hu, Yingyao & Moffitt, Robert, 2017. "Long run trends in unemployment and labor force participation in urban China," Journal of Comparative Economics, Elsevier, vol. 45(2), pages 304-324.
    19. Xu, Chenggang & Zhang, Xiaobo, 2009. "The evolution of Chinese entrepreneurial firms: Township-village enterprises revisited," IFPRI discussion papers 854, International Food Policy Research Institute (IFPRI).
    20. Sudip Ranjan Basu, 2005. "Correlating Growth with Well-Being during Economic Reforms Evidence from India and China," Development and Comp Systems 0509010, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:v:2:y:2010:i:3:p:345-355. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.