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The Political Economy of Food Pricing Policy in China

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  • Jikun Huang
  • Jun Yang
  • Scott Rozelle

Abstract

The overall goal of this paper is to analyse the political economy of food price policies in China during the global food crisis. The results show that given China's unique economic and political context and the nature of its agricultural markets, the government's reaction to the crisis was swift and decisive. Responses, which considered the interests of the relevant stakeholders, included both short-term counter-measures that covered a wide range of domestic and border policies as well as long-term policy changes on biofuels and agricultural investment.

Suggested Citation

  • Jikun Huang & Jun Yang & Scott Rozelle, 2013. "The Political Economy of Food Pricing Policy in China," WIDER Working Paper Series wp-2013-038, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2013-038
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    File URL: https://www.wider.unu.edu/sites/default/files/WP2013-038.pdf
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    References listed on IDEAS

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    1. Jikun Huang & Scott Rozelle, 2003. "TRADE REFORM, THE WTO AND CHINA's FOOD ECONOMY IN THE TWENTY-FIRST CENTURY," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 143-156, June.
    2. Jun Yang & Huanguang Qiu & Jikun Huang & Scott Rozelle, 2008. "Fighting global food price rises in the developing world: the response of China and its effect on domestic and world markets," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 453-464, November.
    3. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    4. Huang, Jikun & Liu, Yu & Martin, Will & Rozelle, Scott, 2009. "Changes in trade and domestic distortions affecting China's agriculture," Food Policy, Elsevier, vol. 34(5), pages 407-416, October.
    5. Huang, Jikun & Wang, Xiaobing & Zhi, Huayong & Huang, Zhurong & Rozelle, Scott, 2011. "Subsidies and distortions in China’s agriculture: evidence from producer-level data," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 1-19.
    6. Cai, Fang & Wang, Dewen & Du, Yang, 2002. "Regional disparity and economic growth in China: The impact of labor market distortions," China Economic Review, Elsevier, vol. 13(2-3), pages 197-212.
    7. Huang, Jikun & Zhi, Huayong & Huang, Zhurong & Rozelle, Scott & Giles, John, 2011. "The Impact of the Global Financial Crisis on Off-farm Employment and Earnings in Rural China," World Development, Elsevier, vol. 39(5), pages 797-807, May.
    8. Luo, Renfu & Zhang, Linxiu & Huang, Jikun & Rozelle, Scott, 2007. "Elections, fiscal reform and public goods provision in rural China," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 583-611, September.
    9. Bruggemann, Ralf & Lutkepohl, Helmut & Saikkonen, Pentti, 2006. "Residual autocorrelation testing for vector error correction models," Journal of Econometrics, Elsevier, vol. 134(2), pages 579-604, October.
    10. Huang, Jikun & Rozelle, Scott, 2006. "The emergence of agricultural commodity markets in China," China Economic Review, Elsevier, vol. 17(3), pages 266-280.
    11. Michael Wüger & Gerhard Thury, 2001. "The treatment of seasonality in error correction models as unobserved component: a case study for an Austrian consumption function," Empirical Economics, Springer, vol. 26(2), pages 325-341.
    12. de Brauw, Alan, 2011. "Migration and child development during the food price crisis in El Salvador," Food Policy, Elsevier, vol. 36(1), pages 28-40, February.
    13. 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.
    14. Wang, Honglin & Dong, Xiaoxia & Rozelle, Scott & Huang, Jikun & Reardon, Thomas, 2009. "Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China," World Development, Elsevier, vol. 37(11), pages 1791-1801, November.
    15. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
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    Cited by:

    1. Li, J. & Chavas, J.-P., 2018. "How Have China s Agricultural Price Support Policies Affected Market Prices?: A Quantile Regression Evaluation," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277557, International Association of Agricultural Economists.
    2. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    3. Chavas, Jean-Paul & Li, Jian, 2016. "On the Economics of Commodity Price Dynamics and Price Volatility," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235070, Agricultural and Applied Economics Association.
    4. Haiyan Deng & Ruifa Hu & Carl Pray & Yanhong Jin & Zhonghua Li, 2020. "Determinants of Firm‐Level Lobbying and Government Responsiveness in Agricultural Biotechnology in China," Review of Policy Research, Policy Studies Organization, vol. 37(2), pages 201-220, March.
    5. Andy McKay & Finn Tarp, 2014. "Distributional Impacts of the 2008 Global Food Price Spike in Vietnam," WIDER Working Paper Series wp-2014-030, World Institute for Development Economic Research (UNU-WIDER).
    6. Flaig, Dorothee & Stone, Susan & van Tongeren, Frank, 2014. "Global Value Chains and the Cost of Protection: Insights from the New OECD Trade Model," Conference papers 332508, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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