Impacts of agricultural public spending on Chinese food economy: A general equilibrium approach
Purpose – The purpose of this paper is to develop a dynamic computable general equilibrium (DCGE) model to analyze economy-wide impacts of different types of public spending in China. A particular focus is placed on their impacts on food economy. Design/methodology/approach – In this paper, DCGE model is developed to analyze economy-wide impacts of different types of public spending in China. The effects of increased agricultural subsidies, agricultural R&D, and irrigation are simulated by using China DCGE model. Findings – The results show that public spending has significant impact on food production, price, and trade. The increased public spending on agricultural R&D, irrigation, and agricultural subsidy also has modest impacts on other sectors such as industry, service, and GDP growth. Originality/value – The paper constructs the China dynamic CGE model and analyzes economy-wide impacts of different types of public spending in China, especially for the food economy.
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Volume (Year): 3 (2011)
Issue (Month): 4 (November)
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References listed on IDEAS
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