IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v15y2025i8p861-d1635412.html
   My bibliography  Save this article

Regional Differences and Dynamic Evolution of Agricultural Product Market Integration in China

Author

Listed:
  • Fuxing Liu

    (Business School, Huaiyin Normal University, Huaian 223001, China)

  • Yumeng Gu

    (College of Economics and Management, Huazhong Agriculture University, Wuhan 430070, China
    Institute of Horticultural Economics, Huazhong Agriculture University, Wuhan 430070, China
    Hubei Rural Development Research Center, Wuhan 430070, China)

  • Qin Liu

    (Academy of the Zhonghuaminzu Community, Yangtze Normal University, Chongqing 408100, China)

Abstract

The integration of the agricultural product market is of great significance to reducing price fluctuations and improving social welfare. In this study, we employ the relative price method to measure the integration of the agricultural product market in 31 Chinese provinces from 2003 to 2022. We use the Dagum–Gini coefficient and its decomposition and the σ convergence and β convergence models to analyze regional variations, time trends, and convergence. It is found that the degree of integration of the Chinese agricultural product market did not increase continuously but fluctuated with increasing intensity. The spatial differentiation degree of agricultural market integration fluctuated. The integration degree of the agricultural product market has σ convergence, absolute β convergence, and conditional β convergence. The marginal contribution of this study is the systematic analysis of the dynamic evolution and convergence of the integration of the Chinese agricultural product market. In order to improve the integration degree of the agricultural product market, in this paper, we put forward policy suggestions from three aspects: strengthening policy support, optimizing resource allocation, and building agricultural product market information centers.

Suggested Citation

  • Fuxing Liu & Yumeng Gu & Qin Liu, 2025. "Regional Differences and Dynamic Evolution of Agricultural Product Market Integration in China," Agriculture, MDPI, vol. 15(8), pages 1-21, April.
    • Handle: RePEc:gam:jagris:v:15:y:2025:i:8:p:861-:d:1635412
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/15/8/861/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/15/8/861/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ronald Kabbiri & Manoj Dora & Gabriel Elepu & Xavier Gellynck, 2016. "A Global Perspective of Food Market Integration: A Review," Agrekon, Taylor & Francis Journals, vol. 55(1-2), pages 62-80, June.
    2. Lorenzo Caliendo & Luca David Opromolla & Fernando Parro & Alessandro Sforza, 2021. "Goods and Factor Market Integration: A Quantitative Assessment of the EU Enlargement," Journal of Political Economy, University of Chicago Press, vol. 129(12), pages 3491-3545.
    3. Loy, Jens-Peter & Weiss, Christoph R. & Glauben, Thomas, 2016. "Asymmetric cost pass-through? Empirical evidence on the role of market power, search and menu costs," Journal of Economic Behavior & Organization, Elsevier, vol. 123(C), pages 184-192.
    4. Parsley, David C. & Wei, Shang-Jin, 2001. "Explaining the border effect: the role of exchange rate variability, shipping costs, and geography," Journal of International Economics, Elsevier, vol. 55(1), pages 87-105, October.
    5. Olper, Alessandro & Raimondi, Valentina, 2008. "Agricultural market integration in the OECD: A gravity-border effect approach," Food Policy, Elsevier, vol. 33(2), pages 165-175, April.
    6. Christina Antwiago Amarchey & Paul Adjei Kwakwa, 2024. "Spatial market integration analysis of plantain markets in mid Ghana," Cogent Business & Management, Taylor & Francis Journals, vol. 11(1), pages 2311222-231, December.
    7. Ke, Shanzi, 2015. "Domestic Market Integration and Regional Economic Growth—China’s Recent Experience from 1995–2011," World Development, Elsevier, vol. 66(C), pages 588-597.
    8. Sukkoo Kim, 1995. "Expansion of Markets and the Geographic Distribution of Economic Activities: The Trends in U. S. Regional Manufacturing Structure, 1860–1987," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 881-908.
    9. Scott Rozelle & Albert Park & Jikun Huang & Hehui Jin, 1997. "Liberalization and Rural Market Integration in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 635-642.
    10. Xu, Xinpeng, 2002. "Have the Chinese provinces become integrated under reform?," China Economic Review, Elsevier, vol. 13(2-3), pages 116-133.
    11. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1091-1135.
    12. Sekhar, C.S.C., 2012. "Agricultural market integration in India: An analysis of select commodities," Food Policy, Elsevier, vol. 37(3), pages 309-322.
    13. repec:ags:aaea22:335634 is not listed on IDEAS
    14. Abay, Kibrom A. & Abdelfattah, Lina & Breisinger, Clemens & Siddig, Khalid, 2023. "Evaluating cereal market (dis)integration in less developed and fragile markets: The case of Sudan," Food Policy, Elsevier, vol. 114(C).
    15. David C. Parsley & Shang-Jin Wei, 1996. "Convergence to the Law of One Price Without Trade Barriers or Currency Fluctuations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(4), pages 1211-1236.
    16. repec:ags:ijag24:346854 is not listed on IDEAS
    17. Mahamane Maliki Amadou & Issa Sanogo, 2010. "Rice market integration and food security in Nepal: The role of cross-border trade with India," Post-Print halshs-00518371, HAL.
    18. Dagum, Camilo, 1997. "A New Approach to the Decomposition of the Gini Income Inequality Ratio," Empirical Economics, Springer, vol. 22(4), pages 515-531.
    19. Sanogo, Issa & Maliki Amadou, Mahamane, 2010. "Rice market integration and food security in Nepal: The role of cross-border trade with India," Food Policy, Elsevier, vol. 35(4), pages 312-322, August.
    20. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
    21. Kabbiri, Ronald & Dora, Manoj & Elepu, Gabriel & Gellynck, Xavier, 2016. "A Global Perspective of Food Market Integration: A Review," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 55(01-2), May.
    22. Awokuse, Titus O., 2007. "Market Reforms, Spatial Price Dynamics, and China's Rice Market Integration: A Causal Analysis with Directed Acyclic Graphs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(01), pages 1-19, April.
    Full references (including those not matched with items on IDEAS)

    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. Zheng, Yilin & Lu, Ming & Li, Jiewei, 2022. "Internal circulation in China: Analyzing market segmentation and integration using big data for truck traffic flow," Economic Modelling, Elsevier, vol. 115(C).
    2. Jeffrey S. Zax & Yin He, 2016. "The Law Of One Price In Chinese Factor Markets," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-31, September.
    3. Li, Jianglong & Lin, Boqiang, 2017. "Does energy and CO2 emissions performance of China benefit from regional integration?," Energy Policy, Elsevier, vol. 101(C), pages 366-378.
    4. Yongzheng Liu & Guangliang Ye, 2019. "Competition Policy and Trade Barriers: Empirical Evidence from China," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(2), pages 193-219, March.
    5. Song, Feng & Bi, De & Wei, Chu, 2019. "Market segmentation and wind curtailment: An empirical analysis," Energy Policy, Elsevier, vol. 132(C), pages 831-838.
    6. Fuzheng Luo & Nengsheng Luo, 2020. "Inter-Provincial Market Fragmentation and Regional Economic Development in China," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    7. Dongmei Guo & Die Hu & Weizeng Sun, 2023. "Effect of goods market segmentation on labor mobility: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 423-449, February.
    8. Peixin Li & Lixia Li & Yichun Xie & Xueliang Zhang, 2021. "Investigating the effects of market segmentation on firm survival and their heterogeneities in China," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2614-2634, December.
    9. Chao Li & John Gibson, 2013. "Spatial Price Differences and Inequality in China: Housing Market Evidence," Working Papers in Economics 13/06, University of Waikato.
    10. Ke, Shanzi, 2015. "Domestic Market Integration and Regional Economic Growth—China’s Recent Experience from 1995–2011," World Development, Elsevier, vol. 66(C), pages 588-597.
    11. HE Canfei & ZHU Shengjun, 2007. "Economic Transition and Industrial Restructuring in China: Structural Convergence or Divergence?," Post-Communist Economies, Taylor & Francis Journals, vol. 19(3), pages 317-342.
    12. Huiying Luo & Xiaohui Liu & Aiqi Wu & Xiaotong Zhong, 2021. "Is it possible to escape? Local protectionism and outward foreign direct investment by Chinese privately-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1499-1524, December.
    13. Xin Fan & Shan Jin & Zeyu Chen, 2023. "Who Benefits from Domestic Market Integration?," Journal of Happiness Studies, Springer, vol. 24(6), pages 2083-2109, August.
    14. Chao Li & John Gibson, 2014. "Spatial Price Differences and Inequality in the People's Republic of China: Housing Market Evidence," Asian Development Review, MIT Press, vol. 31(1), pages 92-120, March.
    15. Liu, Tung & Li, Kui-Wai, 2006. "Disparity in factor contributions between coastal and inner provinces in post-reform China," China Economic Review, Elsevier, vol. 17(4), pages 449-470.
    16. Herrmann-Pillath, Carsten & Libman, Alexander & Yu, Xiaofan, 2014. "Economic integration in China: Politics and culture," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 470-492.
    17. Xiaolin Yu & Kai Wan, 2025. "Can removing regional barriers reduce carbon emissions in border regions? Quasi-natural experiments from China," Economic Change and Restructuring, Springer, vol. 58(2), pages 1-29, April.
    18. Te Lai, 2015. "Regional Capital Mobility in China: An Endogenous Parameter Approach," Applied Economics and Finance, Redfame publishing, vol. 2(3), pages 63-75, August.
    19. Ge, Ying, 2009. "Globalization and Industry Agglomeration in China," World Development, Elsevier, vol. 37(3), pages 550-559, March.
    20. Qin, Quande & Yu, Ying & Liu, Yuan & Zhou, Jianqing & Chen, Xiude, 2023. "Industrial agglomeration and energy efficiency: A new perspective from market integration," Energy Policy, Elsevier, vol. 183(C).

    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:gam:jagris:v:15:y:2025:i:8:p:861-:d:1635412. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.