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Distortions at the Border; Integration Inland: Assessing the Effect of WTO Accession on China's Agriculture


  • Jikun Huang
  • Scott Rozelle
  • Yuping Xie


The main goal of the paper is to address the impact of the WTO on China's agricultural sector. To accomplish this goal we address two sets of issues. First, we seek to provide measures of the distortions in China's agricultural sector at a time prior to the nation's accession to WTO. This is accomplished by estimating the nominal rates of protection (NPRs) of the agricultural sector's major commodities using a new methodology to account for grain quality differences within China and between China and the world market. Second, we seek to assess how well integrated China's markets are in order to understand which areas of the country and which segments of the farming population will likely be isolated from, or affected by, the changes that WTO will bring. We find that NPRs differ among commodities. Some of China's agricultural commodities are well above and others are well below world market prices. We also find that if increased imports or exports affect China's domestic price at the border, its own domestic markets are mostly integrated so that price shifts in one area will affect prices in most of the rest of China. Our analysis finds, however, that a number of policy and structural factors limit the overall size of the shock.

Suggested Citation

  • Jikun Huang & Scott Rozelle & Yuping Xie, 2003. "Distortions at the Border; Integration Inland: Assessing the Effect of WTO Accession on China's Agriculture," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(1), pages 97-116.
  • Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:97-116
    DOI: 10.1080/1476528032000039767

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    References listed on IDEAS

    1. Huang, Jikun & Rozelle, Scott & Martin, William J. & Liu, Yu, 2007. "Distortions to Agricultural Incentives in China," Agricultural Distortions Working Paper Series 48478, World Bank.
    2. Huang, Jikun & Chen, Chunlai, 1999. "Effects of Trade Liberalization on Agriculture in China: Institutional and Structural Aspects," Working Papers 32722, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
    3. Albert Park & Hehui Jin & Scott Rozelle & Jikun Huang, 2002. "Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 67-82.
    4. Anderson, Kym & Peng, Chao Yang, 1998. "Feeding and fueling China in the 21st century," World Development, Elsevier, vol. 26(8), pages 1413-1429, August.
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    Cited by:

    1. J. D. Mullen, 2005. "Domestic grain market reform in china: the contribution of economic policy research funded by ACIAR," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 3(1), pages 75-94.


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