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Rice, wheat, and corn supply response in China

Author

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  • Brockhaus, Jan
  • Huang, Jikun
  • Hu, Jiliang
  • Kalkuhl, Matthias
  • von Braun, Joachim
  • Yang, Guolei

Abstract

This study analyses the indica rice, winter wheat, and corn production response to prices, rainfall, temperatures, and other parameters for the agriculturally most important provinces in China. System and difference GMM estimators are used as the number of groups is large compared to the time periods and the production response is a dynamic process. We find that all crops strongly respond to prices around planting time and shortly after while prices further away from the time of planting turn out insignificant. Furthermore, rainfall affects the production positively and high temperatures negatively for all crops. The results for other variables differ between the crops. Mixed outcomes are found for irrigation, fertilizer prices, area affected by droughts and interaction terms. Results suggest that irrigation is only partly able to compensate for impacts of weather variability. The presented method for analyzing the price response at different points in time may also be used for general model specification tests.

Suggested Citation

  • Brockhaus, Jan & Huang, Jikun & Hu, Jiliang & Kalkuhl, Matthias & von Braun, Joachim & Yang, Guolei, 2015. "Rice, wheat, and corn supply response in China," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205988, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea15:205988
    DOI: 10.22004/ag.econ.205988
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    File URL: http://ageconsearch.umn.edu/record/205988/files/Rice_%20wheat_%20and%20corn%20supply%20response%20in%20China_20150527.pdf
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    References listed on IDEAS

    as
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    Keywords

    Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Food Security and Poverty; Production Economics;

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