Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders
Using a unique survey data on agricultural traders in China in 2004, this study provides direct evidence on the significance of inter-regional trade barriers and their key components. Our major findings are as follows. (1) The trade barriers within China are fairly small, accounting for about 20 percent of trade value. (2) Transport and non-transport costs respectively contribute 42% and 58% to the trade barriers. (3) Labor and transport-related taxes are the two largest proportions of total transport costs, and respectively accounts for 35% and 30%. (4) Artificial trade barriers created by the government are not sizable as we perceived. (5) Road quality is crucial for reducing transport costs within China: Increasing transport speed by 1 km per hour, the total transport costs for Chinese agricultural traders would decrease by 0.6 percent mainly due to improved fuel-burning efficiency and reduced labor requirement.
|Date of creation:||16 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 551 39 14066
Fax: + 49 551 39 14059
Web page: http://www.uni-goettingen.de/en/82144.html
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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).
- KC Fung & Alicia Garcia-Herrero & Mario Nigrinis Ospina, 2013. "Latin American Commodity Export Concentration: Is There a China Effect?," Working Papers 1306, BBVA Bank, Economic Research Department.
- Jane Korinek & Patricia Sourdin, 2010.
"Clarifying Trade Costs: Maritime Transport and Its Effect on Agricultural Trade,"
Applied Economic Perspectives and Policy,
Agricultural and Applied Economics Association, vol. 32(3), pages 417-435.
- Jane Korinek & Patricia Sourdin, 2009. "Clarifying Trade Costs: Maritime Transport and its Effect on Agricultural Trade," OECD Trade Policy Papers 92, OECD Publishing.
- Amiti, Mary & Javorcik, Beata, 2005.
"Trade Costs and Location of Foreign Firms in China,"
CEPR Discussion Papers
4978, C.E.P.R. Discussion Papers.
- Amiti, Mary & Smarzynska Javorcik, Beata, 2008. "Trade costs and location of foreign firms in China," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 129-149, February.
- Amiti, Mary & Javorcik, Beata Smarzynska, 2005. "Trade costs and location of foreign firms in China," Policy Research Working Paper Series 3564, The World Bank.
- International Monetary Fund, 2005. "Trade Costs and Location of Foreign Firms in China," IMF Working Papers 05/55, International Monetary Fund.
- Fan, Shenggen & Zhang, Xiaobo, 2004. "Infrastructure and regional economic development in rural China," China Economic Review, Elsevier, vol. 15(2), pages 203-214.
- Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
- Alwyn Young, 2000. "The Razor'S Edge: Distortions And Incremental Reform In The People'S Republic Of China," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1091-1135, November.
- Michael E. Waugh, 2009.
"International trade and income differences,"
435, Federal Reserve Bank of Minneapolis.
- Poncet, Sandra, 2003. "Measuring Chinese domestic and international integration," China Economic Review, Elsevier, vol. 14(1), pages 1-21.
- Yu, Xiaohua & Abler, David G. & Zeng, Yinchu, 2009. "Contractual Arrangements of Traders in Chinese Wholesale Markets," 2009 Conference, August 16-22, 2009, Beijing, China 51399, International Association of Agricultural Economists.
- Bart Minten & Lalaina Randrianarison & Johan F.M. Swinnen, 2006.
"Global Retail Chains and Poor Farmers: Evidence from Madagascar,"
LICOS Discussion Papers
16406, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
- Xiaohua Yu & David Abler, 2009. "The Demand for Food Quality in Rural China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 57-69.
- James E. Anderson & Eric van Wincoop, 2004.
Boston College Working Papers in Economics
593, Boston College Department of Economics.
- Fan, Shenggen & Chan-Kang, Connie, 2004.
"Road development, economic growth, and poverty reduction in China,"
DSGD discussion papers
12, International Food Policy Research Institute (IFPRI).
- Fan, Shenggen & Chan-Kang, Connie, 2005. "Road development, economic growth, and poverty reduction in China:," Research reports 138, International Food Policy Research Institute (IFPRI).
- Khandker, Shahidur R. & Bakht, Zaid & Koolwal, Gayatri B., 2006.
"The poverty impact of rural roads : evidencefrom Bangladesh,"
Policy Research Working Paper Series
3875, The World Bank.
- Shahidur R. Khandker & Zaid Bakht & Gayatri B. Koolwal, 2009. "The Poverty Impact of Rural Roads: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 685-722, 07.
- Angel De la Fuente & Jose Emilio Bosca, 2011.
"Gasto educativo por regiones y niveles en 2005,"
1119, BBVA Bank, Economic Research Department.
- Tian, Xu & Yu, Xiaohua, 2012.
"The Enigmas of TFP in China: A meta-analysis,"
China Economic Review,
Elsevier, vol. 23(2), pages 396-414.
- Xu Tian & Xiaohua Yu, 2012. "The Enigmas of TFP in China: A Meta-Analysis," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 113, Courant Research Centre PEG.
- Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
- Jacoby, Hanan G. & Minten, Bart, 2009.
"On measuring the benefits of lower transport costs,"
Journal of Development Economics,
Elsevier, vol. 89(1), pages 28-38, May.
- Jacoby, Hanan G. & Minten, Bart, 2008. "On measuring the benefits of lower transport costs," Policy Research Working Paper Series 4484, The World Bank.
- Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993.
"How infrastructure and financial institutions affect agricultural output and investment in India,"
Journal of Development Economics,
Elsevier, vol. 41(2), pages 337-366, August.
- Binswanger, Hans P. & Khandker, Shahidur R & Rosenzweig, Mark R., 1989. "How infrastructure and financial institutions affect agricultural output and investment in India," Policy Research Working Paper Series 163, The World Bank.
- 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.
- Carsten A. Holz, 2009. "No Razor's Edge: Reexamining Alwyn Young's Evidence for Increasing Interprovincial Trade Barriers in China," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 599-616, August.
- Jikun Huang & Scott Rozelle & Min Chang, 2004. "Tracking Distortions in Agriculture: China and Its Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 59-84.
- Dorosh, Paul A. & Stifel, David & Minten, Bart, 2003. "Transaction costs and agricultural productivity," MSSD discussion papers 56, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:got:gotcrc:112. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dominik Noe)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.