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China's Economic Growth, Changing Comparative Advantages and Agricultural Trade

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  • Anderson, Kym

Abstract

The rapid growth of the Chinese economy during the 1980s was accompanied by an equally rapid shift in China's comparative advantage towards light manufactures, such as textiles and clothing, at the expense of agriculture. If that economy were to resume the economic reform process that was stalled in 1988-89, its comparative advantages would move even further in that direction, following the pattern of its more industrialised neighbours. Dependence on agricultural imports - particularly feed grains, cotton and wool would rise unless domestic prices for farm products are increased substantially. Model simulation results are presented to support this conclusion (which is based on theory and historical experience) and to indicate the orders of magnitude that might be involved under various assumptions. The paper concludes with a discussion of the implications for China and its trading partners, including Australia.

Suggested Citation

  • Anderson, Kym, 1990. "China's Economic Growth, Changing Comparative Advantages and Agricultural Trade," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 58(01), pages 1-20, April.
    • Handle: RePEc:ags:remaae:12289
    DOI: 10.22004/ag.econ.12289
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    References listed on IDEAS

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    1. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318, November.
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    Cited by:

    1. Kevin Chen & Lian Xu & Yufeng Duan, 2000. "Ex-Post competitiveness of China's export in agri-food products: 1980-96," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 281-294.
    2. Pawlak, Karolina, 2017. "Importance and Comparative Advantages of the EU and US Agri-food Sector in World Trade in 1995-2015," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 17(32, Part ), December.

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