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The Nature And Distortions To Agricultural Incentives In China And Implications Of Wto Accession


  • Huang, Jikun
  • Rozelle, Scott


The overall goal of our paper is to understand how WTO will affect the agriculture sector in China. To accomplish this goal we have two specific objectives. First, we seek to provide measures of the distortions in China's agricultural sector at a time immediately prior to the nation's accession to WTO. Second, we seek to assess how well integrated China's markets are in order to understand which areas of the country and which segments of the farming population will likely be isolated from or affected by the changes that WTO will bring. Ultimately, with a knowledge of the size and magnitude of the impacts, researchers will be better able to being working on understanding how the policies that WTO will impose on China will change the gap between the domestic and international price and affect imports and exports, domestic production and production, income and poverty. To meet these objectives, the rest of the paper is organized as following. First, we will seek to provide a context for our analysis of the current distortions that affect China's agriculture. Second, after briefly discussing our data and way of collecting information for calculating the gap in prices between international and domestic markets, we present measures of NPRs for a set of commodities for China. The next section then discusses how these distortions should be expected to change as China implements its WTO obligations and gains access (or not) to the promises that were made to it. The fourth section of the paper then analyzes the transmission of prices through the economy. The final section discusses the implication of our findings.

Suggested Citation

  • Huang, Jikun & Rozelle, Scott, 2002. "The Nature And Distortions To Agricultural Incentives In China And Implications Of Wto Accession," Working Papers 11970, University of California, Davis, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:ucdavw:11970
    DOI: 10.22004/ag.econ.11970

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    References listed on IDEAS

    1. Alan de Brauw & Jikun Huang & Scott Rozelle, "undated". "Sequencing and the Success of Gradualism: Empirical Evidence from China's Agricultural Reform," Center for Development Economics 173, Department of Economics, Williams College.
    2. 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.
    3. Albert Park & Hehui Jin & Scott Rozelle & Jikun Huang, 2002. "Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 67-82.
    4. 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.
    5. Anderson, Kym & Peng, Chao Yang, 1998. "Feeding and fueling China in the 21st century," World Development, Elsevier, vol. 26(8), pages 1413-1429, August.
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    Cited by:

    1. Rozelle, Scott & Huang, Jikun & Zhang, Linxiu, 2002. "Emerging markets, evolving institutions, and the new opportunities for growth in China's rural economy," China Economic Review, Elsevier, vol. 13(4), pages 345-353, December.
    2. He Daming & Liu Jiang & Bobby Cochran, 2010. "The Impacts of Trade Liberalization in Pingbian, China," Chapters, in: Jonathan A. Cook & Owen Cylke & Donald F. Larson & John D. Nash & Pamela Stedman-Edwards (ed.), Vulnerable Places, Vulnerable People, chapter 3, Edward Elgar Publishing.

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