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Analysis of the agriculture trade openness impact on the rural household's food consumption in China

Author

Listed:
  • Difei ZHAO

    (School of Economics and Management, Fuzhou University, Fuzhou, China)

  • Zhenyuan LIU

    (School of Economics and Management, Fuzhou University, Fuzhou, China)

Abstract

Granted that the traditional measure methods in calculating trade openness always trigger results of singleness and twisted outcomes, the aim of the paper is to recalculate the Chinese produce trade openness after 1978, using new measure methods consisting of the trade reliance and shares. After calculation and contrasting, obvious differences have been found between the new and traditional methods. The results of the traditional measure methods turn out to be severely underestimated, whereas the new ones are more specific to reveal the extent of the Chinese produce trade openness, along with demonstrating the function of the Chinese produce in world trade market. Based on the results, utilizing the panel data, the LA/AIDS model and price elasticity, the paper analyses the changes that rural food prices were influenced by the agricultural produce trade openness, and the changes of rural food expenditure and consumption.

Suggested Citation

  • Difei ZHAO & Zhenyuan LIU, 2015. "Analysis of the agriculture trade openness impact on the rural household's food consumption in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(10), pages 461-474.
    • Handle: RePEc:caa:jnlage:v:61:y:2015:i:10:id:188-2014-agricecon
    DOI: 10.17221/188/2014-AGRICECON
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    References listed on IDEAS

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    5. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    6. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
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