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Removing border protection on wheat and rice: effects on rural income and food self‐sufficiency in China *
Author(s) -
Mai Yinhua
Publication year - 2008
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/j.1467-8489.2008.00402.x
Subject(s) - china , agriculture , agricultural economics , computable general equilibrium , rural area , business , economics , geography , political science , law , archaeology , macroeconomics
In this paper, I use the Monash Multi‐Country model – a dynamic Computable General Equilibrium model of China, Australia and the Rest of the World – to analyse the effects of removing border protection on wheat and rice in China. The analysis points to the possibility that removing border protection on wheat and rice may lead to an increase in rural income in China. This is mainly due to the following two factors. First, removing border protection on wheat and rice not only leads to a contraction in agricultural activities, but also leads to an expansion in manufacturing and services activities. Second, on average, rural households in China obtain over half of their income from manufacturing and services activities.