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Effects Of Alternative Chinese Policies On The World Grains Market

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  • H. D. B. H. Gunasekera
  • G. Rodriguez
  • N. Andrews

Abstract

The implications for the world grains market of a reduction in China's domestic absorption, and of the removal of its key manufacturing protection, are analysed in this paper. These policy changes are modelled both alone and together with grain self‐sufficiency in China and with reduction in farm support in the US and EC. In themselves, the reduction in absorption and removal of manufacturing protection in China would have only marginal effects on the world grains market. If, however, China were to achieve grain self‐sufficiency while adopting these macroeconomic and trade policies, world grain prices and trade would fall considerably. In contrast, even a partial removal of protection in the US and EC, simultaneously with the above Chinese macroeconomic and trade policy changes, could substantially increase world grain prices and trade. These positive effects would be considerably reduced if at the same time China were to become self‐sufficient in grain.

Suggested Citation

  • H. D. B. H. Gunasekera & G. Rodriguez & N. Andrews, 1992. "Effects Of Alternative Chinese Policies On The World Grains Market," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(3), pages 440-451, September.
    • Handle: RePEc:bla:jageco:v:43:y:1992:i:3:p:440-451
    DOI: 10.1111/j.1477-9552.1992.tb00237.x
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    References listed on IDEAS

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    1. Yang, Yongzheng & Tyers, Rodney, 1989. "The economic costs of food self-sufficiency in China," World Development, Elsevier, vol. 17(2), pages 237-253, February.
    2. Roningen, Vernon O. & Dixit, Praveen M., 1989. "Economic Implications Of Agricultural Policy Reforms In Industrial Market Economies," Staff Reports 278843, United States Department of Agriculture, Economic Research Service.
    3. Unknown, 1991. "Australian Agricultural Economics Society: Papers Presented at 35th Annual Conference - Index," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 171307, Australian Agricultural and Resource Economics Society.
    4. Rodriguez, Gil & Gunasekera, H. Don B.H. & Martin, Will, 1991. "A General Equilibrium Analysis of Macroeconomic and Trade Policy Changes in China," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 146121, Australian Agricultural and Resource Economics Society.
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