IDEAS home Printed from https://ideas.repec.org/p/ags/iaae03/25825.html
   My bibliography  Save this paper

Public Investment And China'S Grain Production Competitiveness Under Wto

Author

Listed:
  • Zhu, Jing
  • Zhu, J.

Abstract

China's accession to the WTO poses great challenges to the Chinese agricultural sector, especially to the grain producers. Compared with major grain exporters in the world, most grain crops in China are high in production cost and weak in market competitiveness. This can be partly attributed to the fact that Chinese farmers are facing with poorer agricultural production infrastructures and inadequate public investment in agricultural research and extension, which leads to the lower efficiency in private inputs and thus higher private cost per unit of product. After China joining the WTO, protective and administrative measures conflicted with the URAA cannot be utilized as before. Alternative measures should be explored to provide help to farmers to improve competitiveness of their product. Public investment in agricultural research and other production infrastructures should be considered with high priority as one of the policy alternatives. This paper examines the effects of public investment in agricultural research on the reduction of production cost of major grain crops in China by using crop-specific data for the past 20 year. It is concluded that, increasing public investment in agricultural research, which is well within the "green box" policy framework and allowed by the WTO rules, is a plausible and effective measure to reduce grain producer's private input and to enhance the competitiveness of grain products. It is also of great significance to sustained food security in China.

Suggested Citation

  • Zhu, Jing & Zhu, J., 2003. "Public Investment And China'S Grain Production Competitiveness Under Wto," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25825, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25825
    DOI: 10.22004/ag.econ.25825
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/25825/files/cp03zh05.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.25825?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Shenggen Fan, 2000. "Research Investment and the Economic Returns To Chinese Agricultural Research," Journal of Productivity Analysis, Springer, vol. 14(2), pages 163-182, September.
    2. Xiaobo Zhang & Shenggen Fan, 2001. "Estimating Crop-Specific Production Technologies in Chinese Agriculture: A Generalized Maximum Entropy Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 378-388.
    3. Sumner, Daniel A., 2000. "Domestic support and the WTO negotiations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-18.
    4. Huang, Jikun & Rozelle, Scott & Rosegrant, Mark W., 1999. "China'S Food Economy To The 21st Century: Supply, Demand, And Trade," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 171896, Australian Agricultural and Resource Economics Society.
    5. Fan, Shenggan & Pardey, Philip G., 1997. "Research, productivity, and output growth in Chinese agriculture," Journal of Development Economics, Elsevier, vol. 53(1), pages 115-137, June.
    6. Colby, Hunter & Diao, Xinshen & Tuan, Francis C., 2001. "China's WTO Accession: Conflicts with Domestic Agricultural Policies and Institutions," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 2(1), pages 1-14.
    7. Fan, Shenggen & Pardey, Philip G., 1992. "Agricultural Research in China: Its Institutional Development and Impact," ISNAR Archive 310666, CGIAR > International Food Policy Research Institute (IFPRI).
    8. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
    9. Huang, Jikun & Rozelle, Scott & Rosegrant, Mark W, 1999. "China's Food Economy to the Twenty-first Century: Supply, Demand, and Trade," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 737-766, July.
    10. Fan, Shenggen & Agcaoili-Sombilla, Mercedita C., 1997. "Why projections on China's future food supply and demand differ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(2), pages 1-22.
    11. Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
    12. Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-20.
    13. Lin, Justin Yifu, 1991. "Public Research Resource Allocation in Chinese Agriculture: A Test of Induced Technological Innovation Hypotheses," Economic Development and Cultural Change, University of Chicago Press, vol. 40(1), pages 55-73, October.
    14. Colin A. Carter & Funing Zhong, 1999. "Rural Wheat Consumption in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 582-592.
    15. Zhang, Xiaobo & Fan, Shenggen, 2004. "Public investment and regional inequality in rural China," Agricultural Economics, Blackwell, vol. 30(2), pages 89-100, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhu, Jing, 2004. "Public investment and China's long-term food security under WTO," Food Policy, Elsevier, vol. 29(1), pages 99-111, February.
    2. 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.
    3. Renkow, Mitch, 2010. "Impacts of IFPRI's "priorities for pro-poor public investment" global research program:," Impact assessments 31, International Food Policy Research Institute (IFPRI).
    4. Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2003. "Agricultural Research and Urban Poverty: The Case of China," World Development, Elsevier, vol. 31(4), pages 733-741, April.
    5. Fan, Shenggen & Fang, Cheng & Zhang, Xiaobo, 2001. "How Agricultural Research Affects Urban Poverty In Developing Countries? The Case Of China," 2001 Annual meeting, August 5-8, Chicago, IL 20636, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. van Tongeren, Frank W. & Huang, Jikun, 2004. "China'S Food Economy In The Early 21st Century; Development Of China'S Food Economy And Its Impact On Global Trade And On The Eu," Report Series 29093, Wageningen University and Research Center, Agricultural Economics Research Institute.
    7. Huang, Qiuqiong & Rozelle, Scott & Howitt, Richard E. & Wang, Jinxia & Huang, Jikun, 2006. "Irrigation Water Pricing Policy in China," 2006 Annual meeting, July 23-26, Long Beach, CA 21241, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Huang, Qiuqiong & Rozelle, Scott & Lohmar, Bryan & Huang, Jikun & Wang, Jinxia, 2006. "Irrigation, agricultural performance and poverty reduction in China," Food Policy, Elsevier, vol. 31(1), pages 30-52, February.
    9. Rozelle, Scott & Huang, Jikun, 2000. "Transition, development and the supply of wheat in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), pages 1-29.
    10. Huang, Jikun & Rozelle, Scott, 2010. "Agricultural Development, Nutrition, and the Policies Behind China’s Success," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 1-34, June.
    11. Pardey, Philip G. & Alston, Julian M. & Chan-Kang, Connie & Magalhães, Eduardo C. & Vosti, Stephen A., 2002. "Assessing and attributing the benefits from varietal improvement research: evidence from Embrapa, Brazil," EPTD discussion papers 95, International Food Policy Research Institute (IFPRI).
    12. Diao, Xinshen & Fan, Shenggen & Zhang, Xiaobo, 2003. "China's WTO accession: impacts on regional agricultural income-- a multi-region, general equilibrium analysis," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 332-351, June.
    13. Shenggen Fan, 2000. "Research Investment and the Economic Returns To Chinese Agricultural Research," Journal of Productivity Analysis, Springer, vol. 14(2), pages 163-182, September.
    14. Meng, Erika C.H. & Smale, Melinda & Rozelle, Scott & Ruifa, Hu & Huang, Jikun, 1999. "The Cost Of Wheat Diversity In China," 1999 Annual meeting, August 8-11, Nashville, TN 21580, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Fan, Shenggen & Zhang, Xiaobo, 2004. "Infrastructure and regional economic development in rural China," China Economic Review, Elsevier, vol. 15(2), pages 203-214.
    16. Gould, Brian W. & Sabates, Ricardo, 2001. "The Structure Of Food Demand In Urban China: A Demand System Approach," 2001 Annual meeting, August 5-8, Chicago, IL 20778, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Gong, Binlei, 2018. "Agricultural reforms and production in China: Changes in provincial production function and productivity in 1978–2015," Journal of Development Economics, Elsevier, vol. 132(C), pages 18-31.
    18. Felloni, Fabrizio & Gilbert, John & Wahl, Thomas I. & Wandschneider, Philip, 2003. "Trade policy, biotechnology and grain self-sufficiency in China," Agricultural Economics, Blackwell, vol. 28(3), pages 173-186, May.
    19. Ma, Hengyun & Rae, Allan N., 2004. "Hog Production In China: Technological Bias And Factor Demand," China Agriculture Project Working Papers 23688, Massey University, Centre for Applied Economics and Policy Studies.
    20. You, Liangzhi & Spoor, Max & Ulimwengu, John & Zhang, Shemei, 2011. "Land use change and environmental stress of wheat, rice and corn production in China," China Economic Review, Elsevier, vol. 22(4), pages 461-473.

    More about this item

    Keywords

    Crop Production/Industries;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae03:25825. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.