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

Author

Listed:
  • Huang, Jikun
  • Rozelle, Scott
Abstract
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

    as
    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. Huang, Jikun & Chen, Chunlai, 1999. "Effects of Trade Liberalization on Agriculture in China: Institutional and Structural Aspects," Working Papers 32722, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
    4. 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.
    5. 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.
    6. Huang, Jikun & Chen, Chunlai, 1999. "Effects of Trade Liberalization on Agriculture in China: Commodity Aspects," Working Papers 32665, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
    7. 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. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    2. Elena Ianchovichina & Terrie Walmsley, 2005. "Impact of China's WTO Accession on East Asia," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 261-277, April.
    3. Lugo, Maria Ana & Niu, Chiyu & Yemtsov, Ruslan, 2021. "Rural Poverty Reduction and Economic Transformation in China: A Decomposition Approach," SocArXiv 8rbgw, Center for Open Science.
    4. 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.
    5. Fan, Linlin & Nogueira, Lia & Baylis, Katherine R., 2013. "Agricultural Market Reforms and Nutritional Transition in Rural China," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150203, Agricultural and Applied Economics Association.
    6. van Tongeren, Frank W. & Huang, Jikun, 2004. "China'S Food Economy In The Early 21st Century; Development Of China'S Food Economy And Its Impact On Global Trade And On The Eu," Report Series 29093, Wageningen University and Research Center, Agricultural Economics Research Institute.
    7. Somwaru, Agapi & Skully, David, 2003. "Will Special Agricultural Safeguards Advance or Retard LDC Growth and Welfare? A Dynamic General Equilibrium Analysis," Conference papers 331147, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. 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.
    9. Gerpacio, Roberta V. & Pingali, Prabhu L., 2007. "Tropical and Subtropical Maize in Asia: Production Systems, Constraints, and Research Priorities," Maize Production Systems Papers 56107, CIMMYT: International Maize and Wheat Improvement Center.
    10. Jessica Leight, 2016. "Grain into Gold? The Impact of Agricultural Income Shocks on Rural Chinese Households," Department of Economics Working Papers 2016-13, Department of Economics, Williams College.
    11. Jikun Huang & Scott Rozelle & Yuping Xie, 2003. "Distortions at the Border; Integration Inland: Assessing the Effect of WTO Accession on China's Agriculture," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(1), pages 97-116.
    12. Shalizi, Zmarak, 2006. "Addressing China's growing water shortages and associated social and environmental consequences," Policy Research Working Paper Series 3895, The World Bank.
    13. Saracoglu, Durdane Sirin, 2003. "Heterogeneous Agents, Inequality, and the Informal Sector in Developing Countries: A Dynamic General Equilibrium Analysis," Conference papers 331105, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Elena Ianchovichina & Will Martin, 2004. "Impacts of China's Accession to the World Trade Organization," The World Bank Economic Review, World Bank, vol. 18(1), pages 3-27.
    15. Lohmar, Bryan & Diao, Xinshen & Somwaru, Agapi & Tuan, Francis C. & Chan, Kitty Kay, 2003. "Softening the Impact of Adjustment to Reform: The China Experience," Policy Reform and Adjustment Workshop, October 23-25, 2003, Imperial College London, Wye Campus 15733, International Agricultural Policy Reform and Adjustment Project (IAPRAP).

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