Do China's agricultural policies matter for world commodity markets?
Purpose – The purpose of this paper is to quantify the implications of China's recently adopted agricultural policies on domestic and international commodity markets. Design/methodology/approach – A systematic, quantitative analysis is applied to address whether China's recent trade and production policies distort China's domestic and international commodity markets. The paper provides a clear picture of how trade-restricting policies affect markets using a 42-country partial equilibrium global dynamic agricultural simulation model. Findings – The paper shows that recent agricultural policy reforms increase China's production slightly, causing imports to decrease while exports decline because of input subsidies, export taxes and the reduction of export value added tax rebates. Domestic prices to consumers decrease in real terms. The effects on world markets are small as the set of policies adopted partially offset each other in the international arena. Research limitations/implications – The paper indicates that the adoption of the policy reforms lower price levels domestically and benefit lower income urban and rural households, whose diets are largely based on rice and wheat as staple foods. Future model enhancements should include measures of producer and consumer welfare in order to capture the total impacts of policies and policy changes in China. Originality/value – The paper quantifies the potential implications of the recent agricultural policy reforms in China. This contributes to the investigation of the effects of these policies implemented by the Chinese Government to achieve the country's policy objectives. Owing to the dynamics of China's policy implementation an in-depth analysis sheds light and contributes to capturing the impacts of policy reforms on the domestic and international markets.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 3 (2011)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/caer.htm Email:
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.:
- Colby, Hunter & Diao, Xinshen & Tuan, Francis, 2001. "China's WTO accession," TMD discussion papers 68, International Food Policy Research Institute (IFPRI).
- Heerink, Nico & Kuiper, Marijke H. & Xiaoping, Shi, 2006.
"China's New Rural Income Support Policy: Impact on Grain Production and Rural Income Inequality,"
2006 Annual Meeting, August 12-18, 2006, Queensland, Australia
25625, International Association of Agricultural Economists.
- Nico Heerink & Marijke Kuiper & Xiaoping Shi, 2006. "China's New Rural Income Support Policy: Impacts on Grain Production and Rural Income Inequality," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(6), pages 58-69.
- Huang, Jikun & Wang, Xiaobing & Zhi, Huayong & Huang, Zhurong & Rozelle, Scott, 2011.
"Subsidies and distortions in China’s agriculture: evidence from producer-level data,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 55(1), March.
- Jikun Huang & Xiaobing Wang & Huayong Zhi & Zhurong Huang & Scott Rozelle, 2011. "Subsidies and distortions in China’s agriculture: evidence from producer‐level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 53-71, 01.
- Xiwen Chen, 2009. "Review of China's agricultural and rural development: policy changes and current issues," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(2), pages 121-135, May.
- Lars Brink, 2009. "WTO Constraints on Domestic Support in Agriculture: Past and Future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 1-21, 03.
- Lohmar, Bryan & Gale, H. Frederick, Jr. & Tuan, Francis C. & Hansen, James M., 2009. "China's Ongoing Agricultural Modernization: Challenges Remain After 30 Years of Reform," Economic Information Bulletin 58316, United States Department of Agriculture, Economic Research Service.
When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:v:3:y:2010:i:1:6-25. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.