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Regional Economic Consequences of the Chinese Agricultural Support Policies

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  • Meng, Sam
  • Siriwardana, Mahinda
  • Wang, Can

Abstract

The Chinese government has implemented comprehensive domestic agricultural support policies to stimulate agricultural production for almost one decade. However, there is surprisingly little literature on its economic impact, particularly at the regional level. Using a multi-regional comparative static computable general equilibrium model, we estimate the spatial economic consequences of these policies for all 31 provinces/municipalities under the agricultural resource constraints in China. Our results show that, under the pressure of its scarce and progressively degrading natural resource base, the agricultural support policies ultimately push up production costs in all sectors and erode the international competitiveness of export-oriented industries.

Suggested Citation

  • Meng, Sam & Siriwardana, Mahinda & Wang, Can, 2016. "Regional Economic Consequences of the Chinese Agricultural Support Policies," Conference papers 332712, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332712
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    References listed on IDEAS

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    1. Xiwen Chen, 2009. "Review of China's agricultural and rural development: policy changes and current issues," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(2), pages 121-135, January.
    2. Wusheng Yu & Hans G. Jensen, 2010. "China’s Agricultural Policy Transition: Impacts of Recent Reforms and Future Scenarios," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 343-368, June.
    3. Xiwen Chen, 2009. "Review of China's agricultural and rural development: policy changes and current issues," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 1(2), pages 121-135, January.
    4. Ramon L. Clarete & James A. Roumasset, 1986. "CGE Models and Development Policy Analysis: Problems, Pitfalls, and Challenges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(5), pages 1212-1216.
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