The Global Food Price Crisis and China-World Rice Market Integration: A Spatial-Temporal Rational Expectations Equilibrium Model
In this paper, we examine how China, the world’s largest rice producer and consumer, would affect the international rice market if it liberalized its trade in rice and became more fully integrated into the global rice market. The impacts of trade liberalization are estimated using a spatial-temporal rational expectations model of the world rice market characterized by four interdependent markets with stochastic production patterns, constant-elasticity demands, expected-profit maximizing private speculative storers, and government stockpiling authorities. The results show that full entry by China into the world rice market will substantially reduce and stabilize the world rice price, reducing the risk faced by major importers, particularly price spikes caused by restrictive trade policies implemented by major exporters.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shiva S. Makki & Luther G. Tweeten & Mario J. Miranda, 1996. "Wheat Storage and Trade in an Efficient Global Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 879-890.
- Rozelle, Scott, et al, 2000. "Bureaucrat to Entrepreneur: The Changing Role of the State in China's Grain Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 227-52, January.
- Larson, Donald F. & Lampietti, Julian & Gouel, Christophe & Cafiero, Carlo & Roberts, John, 2012. "Food security and storage in the Middle East and North Africa," Policy Research Working Paper Series 6031, The World Bank.
- Brennan, Donna, 2003. "Price dynamics in the Bangladesh rice market: implications for public intervention," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 29(1), July.
- Brennan, Donna, 2003. "Price dynamics in the Bangladesh rice market: implications for public intervention," Agricultural Economics, Blackwell, vol. 29(1), pages 15-25, July.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:149965. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.