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Price Elasticities of Key Agricultural Commodities in China

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  • Zhuang, Renan
  • Abbott, Philip C.

Abstract

We estimate a simultaneous equations model of Chinese markets for wheat, rice, corn, pork, and poultry. Elasticities for consumption, feed demand, production, stocks demand, and foreign trade fall within the range of results from previous studies, and are reasonable magnitudes. China has market power in the trade for all commodities.

Suggested Citation

  • Zhuang, Renan & Abbott, Philip C., 2005. "Price Elasticities of Key Agricultural Commodities in China," 2005 Annual meeting, July 24-27, Providence, RI 19267, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19267
    DOI: 10.22004/ag.econ.19267
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    2. Peter Bielik & Martina Hanova & Renata Benda-Prokeinova, 2021. "How to be sustainable in beef consumption - Exploring the factors. Case study," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(9), pages 382-390.
    3. Boxuan Li & Meng Niu & Jing Zhao & Xi Zheng & Ran Chen & Xiao Ling & Jinxin Li & Yuxiao Wang, 2023. "Agricultural Cultivation Structure in Arid Areas Based on Water–Carbon Nexus—Taking the Middle Reaches of the Heihe River as an Example," Land, MDPI, vol. 12(7), pages 1-18, July.
    4. Taoyuan Wei & Solveig Glomsrød & Tianyi Zhang, 2017. "Extreme weather, food security and the capacity to adapt – the case of crops in China," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(3), pages 523-535, June.
    5. Jing You, 2014. "Dietary change, nutrient transition and food security in fast-growing China," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 9, pages 204-245, Edward Elgar Publishing.
    6. Qiujie Zheng & H. Holly Wang, 2017. "Market Power in the Chinese Wine Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 33(1), pages 30-42, January.
    7. Chen, Yuquan & Yu, Xiaohua, 2018. "Does the centralized slaughtering policy create market power for pork industry in China?," China Economic Review, Elsevier, vol. 50(C), pages 59-71.
    8. Baharom, A.H. & Radam, Alias & Habibullah, M.S. & Hirnissa, M.T, 2009. "The Volatility of Thai Rice Price," MPRA Paper 14113, University Library of Munich, Germany.
    9. Xin Gu & Zhang-Yue Zhou & Yan-Rui Wu, 2019. "Understanding China’S Urban Consumption Patterns: New Estimates And Implications," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 961-981, September.
    10. Ortega, David L. & Wang, H. Holly & Wu, Laping, 2009. "Assessing Consumer Preferences and Attitudes toward Imported Pork in Urban China," 2009 Conference, August 16-22, 2009, Beijing, China 49993, International Association of Agricultural Economists.
    11. Hovhannisyan, Vardges & Gould, Brian W., 2010. "Quantifying the Structure of Food Demand in China Using a Generalized Quadratic AIDS Specification," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56422, Southern Agricultural Economics Association.
    12. Jingjing Wang & Xiaoyang Wang & Xiaohua Yu, 2023. "Shocks, cycles and adjustments: The case of China's Hog Market under external shocks," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 703-726, July.
    13. Li, Haoran & Wan, Xibo & Zhang, Wendong, 2020. "How do Firms Respond to Political Tensions? Evidence from Chinese Food Importers," ISU General Staff Papers 202011250800001118, Iowa State University, Department of Economics.
    14. 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.
    15. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    16. Wen‐Ge Fu & Sizhong Sun & Zhang‐Yue Zhou, 2011. "Technical efficiency of food processing in China: the case of flour and rice processing," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 3(3), pages 321-334, September.
    17. Ito, Junichi & Ni, Jing, 2013. "Capital deepening, land use policy, and self-sufficiency in China's grain sector," China Economic Review, Elsevier, vol. 24(C), pages 95-107.
    18. Lopez, Rigoberto A. & He, Xi & De Falcis, Eleonora, 2017. "What Drives China’s New Agricultural Subsidies?," World Development, Elsevier, vol. 93(C), pages 279-292.
    19. Liu, Yunqiang & Liu, Sha & Ye, Deping & Tang, Hong & Wang, Fang, 2022. "Dynamic impact of negative public sentiment on agricultural product prices during COVID-19," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    20. Li, Haoran & Wan, Xibo & Zhang, Wendong, 2021. "How do Firms Respond to Long-term Political Tensions? Evidence from Chinese Food Importers," ISU General Staff Papers 202106020700001118, Iowa State University, Department of Economics.

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