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Empirical analysis of agricultural trade between EU and China: Explanation behind China's growing agrifood imports

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  • Huan-Niemi, Ellen
  • Niemi, Jyrki S.

Abstract

This study attempts to identify and measure quantitatively the effects of changing economic environment and trade policies on China’s agricultural imports from the EU as well as globally. The approach is to model behavioural relationships in the agricultural trade between China and the EU by using annual trade data from 1986 to 2005. The results indicate that Chinese agricultural imports are relatively inelastic to absolute price changes, but relative price changes significantly affect the market shares of EU exports due to price competition. Trade liberalisation in the form of tariff reductions is trivial in changing the quantity of China’s agricultural imports from the EU. China’s growing agrifood imports has been fuelled by rapid income growth of its population.

Suggested Citation

  • Huan-Niemi, Ellen & Niemi, Jyrki S., 2008. "Empirical analysis of agricultural trade between EU and China: Explanation behind China's growing agrifood imports," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43962, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:43962
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    References listed on IDEAS

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    1. Hendry, David F, 1986. "Econometric Modelling with Cointegrated Variables: An Overview," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 201-212, August.
    2. Antoine Bouët & Jean-Christophe Bureau & Yvan Decreux & Sébastien Jean, 2005. "Multilateral Agricultural Trade Liberalisation: The Contrasting Fortunes of Developing Countries in the Doha Round," The World Economy, Wiley Blackwell, vol. 28(9), pages 1329-1354, September.
    3. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889.
    4. Carone, Giuseppe, 1996. "Modeling the U.S. demand for imports through cointegration and error correction," Journal of Policy Modeling, Elsevier, vol. 18(1), pages 1-48, February.
    5. Colby, Hunter & Diao, Xinshen & Tuan, Francis, 2001. "China's WTO accession," TMD discussion papers 68, International Food Policy Research Institute (IFPRI).
    6. Honma, Masayoshi, 1991. "Growth in Japan's horticultural trade with developing countries: an economic analysis of the market," Research reports 89, International Food Policy Research Institute (IFPRI).
    7. Harald Grethe, 2006. "Agricultural Trade Reform and the Doha Development Agenda," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(4), pages 591-595, December.
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    Keywords

    EU; China; agricultural trade; International Relations/Trade;

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