IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/70385.html
   My bibliography  Save this paper

Impacts of Trade Liberalization on Dairy Industry in China

Author

Listed:
  • Ahmed, Wasim
  • Hussain, Safdar
  • Jafar, Rana Muhammad Sohail
  • Guang-Ju, Wang
  • Rabnawaz, Ambar
  • Saqib, Zulkaif Ahmed
  • JianZhou, Yang

Abstract

The aim of this review to call attention towards the impacts of exchange liberalization on the dairy industry, and these impacts are vital concerning the monetary development of a country. The focus of this literature is on certain issues of proficiency and worldwide competitiveness of the dairy segment in an open economy environment. It identifies the sensational competition raise in the dairy sector affected by China's liberalization programs, via signing trade agreements with several countries across the globe, and the execution of the World Trade Organization (WTO) agreements. It gives an outline of the WTO Agreement on Agriculture and its impacts on the dairy part. So we have concentrated on specific parts of dairy, particularly production, demand and trade policies to empower dairy holders under the worldwide competitiveness and indicators like the local asset cost proportion. China dairy production was 36 million tons during 2010, however alarmingly declined up to 26.52 million tons in 2014. The production declined had driven towards import from out of the country, in this manner strategies and agreements require certain facilitations to meet local dairy items demands in China. The impacts of duties by developed nations to lessen taxes, local support and export subsidies have been insignificant and unless these nations fundamentally diminish the exchange distorting endorsements to their dairy segment it will be troublesome for China to contend with the global market.

Suggested Citation

  • Ahmed, Wasim & Hussain, Safdar & Jafar, Rana Muhammad Sohail & Guang-Ju, Wang & Rabnawaz, Ambar & Saqib, Zulkaif Ahmed & JianZhou, Yang, 2016. "Impacts of Trade Liberalization on Dairy Industry in China," MPRA Paper 70385, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70385
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/70385/1/MPRA_paper_70385.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wei, Shang-Jin & Wu, Yi, 2001. "Globalization and Inequality: Evidence from within China," CEPR Discussion Papers 3088, C.E.P.R. Discussion Papers.
    2. Steve McCorriston & Ian M. Sheldon, 1994. "Selling Import Quota Licenses: The U.S. Cheese Case," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 818-827.
    3. Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2011. "Structural estimation and solution of international trade models with heterogeneous firms," Journal of International Economics, Elsevier, vol. 83(2), pages 95-108, March.
    4. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    5. Jane Korinek & Mark Melatos, 2009. "Trade Impacts of Selected Regional Trade Agreements in Agriculture," OECD Trade Policy Papers 87, OECD Publishing.
    6. Mah, Jai S., 2013. "Globalization, decentralization and income inequality: The case of China," Economic Modelling, Elsevier, vol. 31(C), pages 653-658.
    7. Guanghua Wan & Ming Lu & Zhao Chen, 2007. "Globalization And Regional Income Inequality: Empirical Evidence From Within China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 35-59, March.
    8. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669, Elsevier.
    9. Kennedy, P. Lynn & Rosson, C. Parr, III, 2002. "Impacts Of Globalization On Agricultural Competitiveness: The Case Of Nafta," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(2), pages 1-14, August.
    10. Gibson, Paul R. & Wainio, John & Whitley, Daniel B. & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economic Reports 34055, United States Department of Agriculture, Economic Research Service.
    11. Beghin, John C. & Beghin, John C. & Dong, Fengxia & Elobeid, Amani & Fuller, Frank H. & Matthey, Holger & Tokgoz, Simla & Wailes, Eric J., 2005. "Impact of the European Enlargement and Cap Reforms on Agricultural Markets. Much Ado About Nothing? The," Staff General Research Papers Archive 12731, Iowa State University, Department of Economics.
    12. Peng, Tingjun & Cox, Thomas L., 2005. "An Economic Analysis of the Impacts of Trade Liberalization on Asian Dairy Market," Staff Papers 12630, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    13. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
    14. Jacinto F. Fabiosa & John C. Beghin & Fengxia Dong & Amani Elobeid & Frank H. Fuller & Holger Matthey & Simla Tokgoz & Eric Wailes, 2005. "Impact of the European Enlargement and Common Agricultural Policy Reforms on Agricultural Markets: Much Ado about Nothing? The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 05-wp382, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    15. Havrylyshyn, Oli, 1990. "Trade Policy and Productivity Gains in Developing Countries: A Survey of the Literature," The World Bank Research Observer, World Bank, vol. 5(1), pages 1-24, January.
    16. Catherine Couillard & Ekaterina Turkina, 2015. "Trade Liberalisation: The Effects of Free Trade Agreements on the Competitiveness of the Dairy Sector," The World Economy, Wiley Blackwell, vol. 38(6), pages 1015-1033, June.
    17. Campo, Isabelle Schluep & Beghin, John C., 2005. "Dairy Food Consumption, Production, and Policy in Japan," Staff General Research Papers Archive 12406, Iowa State University, Department of Economics.
    18. Pingali, Prabhu, 2007. "Westernization of Asian diets and the transformation of food systems: Implications for research and policy," Food Policy, Elsevier, vol. 32(3), pages 281-298, June.
    19. Dixit, Praveen M. & Josling, Timothy E., 1997. "State Trading In Agriculture: An Analytical Framework," Working Papers 14608, International Agricultural Trade Research Consortium.
    20. Peng, Tingjun & Cox, Thomas L., 2005. "An Economic Analysis of the Impacts of Trade Liberalization on Asian Dairy Market," Staff Paper Series 490, University of Wisconsin, Agricultural and Applied Economics.
    21. Yoon, Jung-hyun & Lim, Song Soo, 2013. "Potential trade distortion effects of state trading enterprises under the tariff-rate quota scheme," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-19.
    22. Fuller, Frank H. & Beghin, John C. & Rozelle, Scott, 2007. "Consumption of dairy products in urban China: results from Beijing, Shangai and Guangzhou," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 1-16.
    23. Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1299-1324, November.
    24. Jia, Xiangping & Huang, Jikun & Luan, Hao & Rozelle, Scott & Swinnen, Johan, 2012. "China’s Milk Scandal, government policy and production decisions of dairy farmers: The case of Greater Beijing," Food Policy, Elsevier, vol. 37(4), pages 390-400.
    25. Thomas L. Cox & Jonathan R. Coleman & Jean-Paul Chavas & Yong Zhu, 1999. "An Economic Analysis of the Effects on the World Dairy Sector of Extending Uruguay Round Agreement to 2005," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 169-183, December.
    26. Hayakawa, Kazunobu & Yamashita, Nobuaki, 2011. "The role of Preferential Trade Agreements (PTAs) in facilitating global production networks," IDE Discussion Papers 280, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    27. Roberts, Donna & DeRemer, Kate, 1997. "Overview of Foreign Technical Barriers to U.S. Agricultural Exports," Staff Reports 278821, United States Department of Agriculture, Economic Research Service.
    28. Beghin, John C. & Metcalfe, Mark, 2000. "Environmental Regulation and Competitiveness in the Hog Industry: An International Perspective," Staff General Research Papers Archive 5090, Iowa State University, Department of Economics.
    29. Azmeh, Shamel, 2015. "Transient global value chains and preferential trade agreements: rules of origin in US trade agreements with Jordan and Egypt," LSE Research Online Documents on Economics 64601, London School of Economics and Political Science, LSE Library.
    30. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.
    31. Yoon, Jung-Hyun & Lim, Song Soo, 2013. "Potential trade distortion effects of state trading enterprises under the tariff-rate quota scheme," Economics Discussion Papers 2013-22, Kiel Institute for the World Economy (IfW Kiel).
    32. Zhang Wei, 2011. "Regional trade liberalisation: a theoretical review of dynamic time‐path and stability issues," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 25(1), pages 1-14, May.
    33. Skully, David W., 2001. "Economics of Tariff-Rate Quota Administration," Technical Bulletins 184332, United States Department of Agriculture, Economic Research Service.
    34. Blayney, Donald P. & Gehlhar, Mark J. & Bolling, H. Christine & Jones, Keithly G. & Langley, Suchada V. & Normile, Mary Anne & Somwaru, Agapi, 2006. "U.S. Dairy at a Global Crossroads," Economic Research Report 7209, United States Department of Agriculture, Economic Research Service.
    35. Imre Fertö & L. J. Hubbard, 2003. "Revealed Comparative Advantage and Competitiveness in Hungarian Agri–Food Sectors," The World Economy, Wiley Blackwell, vol. 26(2), pages 247-259, February.
    36. James E. Anderson & Eric van Wincoop, 2001. "Borders, Trade and Welfare," Boston College Working Papers in Economics 508, Boston College Department of Economics.
    37. Meilke, Karl D. & Lariviere, Sylvain & Martin, Craig, 2001. "Trade Liberalization in the Dairy Sector: An Overview," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 2(1), pages 1-28.
    38. Kiethly G. Jones & Don Blayney, 2014. "Assessing Changes in Dairy Product Import Demand: The Case of South Korea with Implementation of the KORUS FTA," Agribusiness, John Wiley & Sons, Ltd., vol. 30(1), pages 74-84, January.
    39. Skully, David W., 2001. "Economics Of Tariff-Rate Quota Administration," Technical Bulletins 33576, United States Department of Agriculture, Economic Research Service.
    40. Kim, Euysung, 2000. "Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency," Journal of Development Economics, Elsevier, vol. 62(1), pages 55-83, June.
    41. Pei, Xiaofang & Tandon, Annuradha & Alldrick, Anton & Giorgi, Liana & Huang, Wei & Yang, Ruijia, 2011. "The China melamine milk scandal and its implications for food safety regulation," Food Policy, Elsevier, vol. 36(3), pages 412-420, June.
    42. repec:hal:spmain:info:hdl:2441/1kv8mtgl748r0ahh12air9erdc is not listed on IDEAS
    43. Han, Jun & Liu, Runjuan & Zhang, Junsen, 2012. "Globalization and wage inequality: Evidence from urban China," Journal of International Economics, Elsevier, vol. 87(2), pages 288-297.
    44. Daniel A. Sumner, 1999. "Domestic Price Regulations and Trade Policy: Milk Marketing Orders in the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 5-16, December.
    45. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.
    46. Jarko Fidrmuc, 2009. "Gravity models in integrated panels," Empirical Economics, Springer, vol. 37(2), pages 435-446, October.
    47. Ng, Francis & Yeats, Alexander, 1999. "Good governance and trade policy : are they the keys to Africa's global integration and growth?," Policy Research Working Paper Series 2038, The World Bank.
    48. repec:ags:aare05:139308 is not listed on IDEAS
    49. Yong Zhu & Thomas L. Cox & Jean-Paul Chavas, 1999. "An Economic Analysis of the Effects of the Uruguay Round Agreement and Full Trade Liberalization on the World Dairy Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 187-200, December.
    50. Wang, Zhigang & Mao, Yanna & Gale, Fred, 2008. "Chinese consumer demand for food safety attributes in milk products," Food Policy, Elsevier, vol. 33(1), pages 27-36, February.
    51. Shamel Azmeh, 2015. "Transient global value chains and preferential trade agreements: rules of origin in US trade agreements with Jordan and Egypt," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 475-490.
    52. Meilke, Karl D. & Cairns, Alexander P., 2011. "An Evaluation of Milk Quota Exchange Policies," Trade Policy Briefs 102303, Canadian Agricultural Trade Policy Research Network.
    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. Cheng, Leilei & Yin, Changbin & Chien, Hsiaoping, 2015. "Demand for milk quantity and safety in urban China: evidence from Beijing and Harbin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), April.
    2. Leudjou, Roland R., 2012. "The Doha Round and Food Security in the Dairy Sector in Cameroon: A Global Simulation Model (GSIM) Approach," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 13(1), pages 1-16, April.
    3. Beghin, John C., 2006. "Evolving dairy markets in Asia: Recent findings and implications," Food Policy, Elsevier, vol. 31(3), pages 195-200, June.
    4. Peng, Tingjun & Cox, Thomas L., 2006. "An economic analysis of the impacts of trade liberalization on Asian dairy market," Food Policy, Elsevier, vol. 31(3), pages 249-259, June.
    5. Shaosheng Jin & Rao Yuan & Yan Zhang & Xin Jin, 2019. "Chinese Consumers’ Preferences for Attributes of Fresh Milk: A Best–Worst Approach," IJERPH, MDPI, vol. 16(21), pages 1-16, November.
    6. Hebatalla Rezk & Goma Amer & Nahla Fathi & Sizhong Sun, 2022. "The impact of FDI on income inequality in Egypt," Economic Change and Restructuring, Springer, vol. 55(3), pages 2011-2030, August.
    7. John C. Beghin, 2005. "Dairy Markets in Asia: An Overview of Recent Findings and Implications," Center for Agricultural and Rural Development (CARD) Publications 05-bp47, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Huidan Xue & Chenguang Li & Liming Wang, 2021. "Spatial Price Dynamics and Asymmetric Price Transmission in Skim Milk Powder International Trade: Evidence from Export Prices for New Zealand and Ireland," Agriculture, MDPI, vol. 11(9), pages 1-20, September.
    9. Hussain, Safdar & Ahmed, Wasim & Rabnawaz, Ambar & Jafar, Rana Muhammad Sohail & Saqib, Zulkaif Ahmed & Ullah, Sana & JianZhou, Yang, 2016. "Client Intentions and Buying Behavior with Regard of Dairy Products-Review," MPRA Paper 70383, University Library of Munich, Germany.
    10. Waldron, Scott & Brown, Colin & Longworth, John, 2010. "A critique of high-value supply chains as a means of modernising agriculture in China: The case of the beef industry," Food Policy, Elsevier, vol. 35(5), pages 479-487, October.
    11. Wai Choi Lee & Tsun Se Cheong & Yanrui Wu & Jianxin Wu, 2019. "The Impacts of Financial Development, Urbanization, and Globalization on Income Inequality: A Regression-based Decomposition Approach," Asian Economic Papers, MIT Press, vol. 18(2), pages 126-141, Summer.
    12. Jayanthakumaran, Kankesu, 2002. "The Impact of Trade Liberalisation on Manufacturing Sector Performance in Developing Countries: A Survey of the Literature," Economics Working Papers wp02-07, School of Economics, University of Wollongong, NSW, Australia.
    13. Wang, Hao & Fidrmuc, Jan & Luo, Qi, 2021. "A spatial analysis of inward FDI and urban–rural wage inequality in China," Economic Systems, Elsevier, vol. 45(3).
    14. Tunahan Erdem, 2020. "Competitiveness of dried sector: A case study of world and Turkey," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(8), pages 365-372.
    15. Tarr, David G., 2013. "Putting Services and Foreign Direct Investment with Endogenous Productivity Effects in Computable General Equilibrium Models," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 303-377, Elsevier.
    16. Johnston, Craig M.T. & van Kooten, G. Cornelis, 2017. "Impact of inefficient quota allocation under the Canada-U.S. softwood lumber dispute: A calibrated mixed complementarity approach," Forest Policy and Economics, Elsevier, vol. 74(C), pages 71-80.
    17. Beckman, Jayson & Gale, Fred & Lee, Tani, 2021. "Agricultural Market Access Under Tariff-Rate Quotas," Agricultural Economic Reports 308595, United States Department of Agriculture, Economic Research Service.
    18. Blayney, Don P. & Crawford, Terry L. & Davis, Christopher G., 2016. "Dairy Export Markets: Changing the Structure of US Dairy Demand," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-18, August.
    19. Bchir, Mohamed Hedi & Decreux, Yvan & Guérin, Jean-Louis & Jean, Sébastien, 2002. "Key Assumptions in AGE Trade Models: An Assessment using the Mirage Model," Conference papers 331050, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Hailong Yu & H. Holly Wang & Binglong Li, 2018. "Production system innovation to ensure raw milk safety in small holder economies: the case of dairy complex in China," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 787-797, November.

    More about this item

    Keywords

    Dairy production; Dairy trade;

    JEL classification:

    • F1 - International Economics - - Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:70385. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.