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Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization


  • Jikun Huang
  • Scott Rozelle
  • Min Chang


This article examines the impacts of China's accession to the World Trade Organization on prices in its agricultural sector. The analysis uses a new methodology to estimate nominal protection rates in China's agricultural sector before its accession to the WTO. These new measures account for differences in commodity quality within China and between China and world markets. The analysis shows that some of China's agricultural commodities are well above world market prices and others are well below. The article also assesses market integration and efficiency in China. It finds high degrees of integration between coastal and inland markets and between regional and village markets. The remarkable improvements in market performance in recent years mean that if increased imports or exports affect China's domestic price near the border, producers throughout most of China will feel the price shifts. Copyright 2004, Oxford University Press.

Suggested Citation

  • Jikun Huang & Scott Rozelle & Min Chang, 2004. "Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 59-84.
  • Handle: RePEc:oup:wbecrv:v:18:y:2004:i:1:p:59-84

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    References listed on IDEAS

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    Cited by:

    1. Elena Ianchovichina & Terrie Walmsley, 2005. "Impact of China's WTO Accession on East Asia," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 261-277, April.
    2. Li, Zhigang & Yu, Xiaohua & Zeng, Yinchu & Holst, Rainer, 2012. "Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders," China Economic Review, Elsevier, vol. 23(4), pages 1003-1010.
    3. Huang, Qiuqiong & Rozelle, Scott & Lohmar, Bryan & Huang, Jikun & Wang, Jinxia, 2006. "Irrigation, agricultural performance and poverty reduction in China," Food Policy, Elsevier, vol. 31(1), pages 30-52, February.
    4. Khan, Shahbaz & Hanjra, Munir A. & Mu, Jianxin, 2009. "Water management and crop production for food security in China: A review," Agricultural Water Management, Elsevier, vol. 96(3), pages 349-360, March.
    5. Jikun Huang & Scott Rozelle, 2010. "Agricultural Development, Nutrition, and the Policies Behind China's Success," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 93-126, June.
    6. Liu, Bo & Keyzer, Michiel & van den Boom, Bart & Zikhali, Precious, 2012. "How connected are Chinese farmers to retail markets? New evidence of price transmission," China Economic Review, Elsevier, vol. 23(1), pages 34-46.
    7. 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.
    8. Qiu, Huanguang & Huang, Jikun & Yang, Jun & Rozelle, Scott & Zhang, Yuhua & Zhang, Yahui & Zhang, Yanli, 2010. "Bioethanol development in China and the potential impacts on its agricultural economy," Applied Energy, Elsevier, vol. 87(1), pages 76-83, January.
    9. Li, Zhigang & Yu, Xiaohua & Zeng, Yinchu, 2011. "Estimating the impact of transport efficiency on trade costs: Evidence from Chinese agricultural traders," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114384, European Association of Agricultural Economists.
    10. Heerink, Nico & Qu, Futian & Kuiper, Marijke & Shi, Xiaoping & Tan, Shuhao, 2007. "Policy reforms, rice production and sustainable land use in China: A macro-micro analysis," Agricultural Systems, Elsevier, vol. 94(3), pages 784-800, June.
    11. Huang, Jikun & Rozelle, Scott & Xu, Zhigang & Li, Ninghui, 2005. "Impacts Of Trade Liberalization On Agriculture And Poverty In China," Agricultural Policy Papers 23681, Massey University, Centre for Applied Economics and Policy Studies.
    12. Long, Cheryl & Zhang, Xiaobo, 2012. "Patterns of China's industrialization: Concentration, specialization, and clustering," China Economic Review, Elsevier, vol. 23(3), pages 593-612.
    13. Huang, Jikun & Jun, Yang & Xu, Zhigang & Rozelle, Scott & Li, Ninghui, 2007. "Agricultural trade liberalization and poverty in China," China Economic Review, Elsevier, vol. 18(3), pages 244-265.
    14. Shi, Xiaoping & HEERINK, Nico & QU, Futian, 2011. "Does off-farm employment contribute to agriculture-based environmental pollution? New insights from a village-level analysis in Jiangxi Province, China," China Economic Review, Elsevier, vol. 22(4), pages 524-533.

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