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Changes Of Economic Structure, Interest Groups And Agricultural-Trade Protection: The Case Of China

Author

Listed:
  • WENSHOU YAN

    (School of Business Administration, Zhongnan, University of Economics and Law, P. R. China)

  • KAIXING HUANG

    (��School of Economics, 94 Weijin Road, Nankai University, Tianjin, P. R. China)

Abstract

This paper seeks to explore the motivations behind agricultural trade-related support policies through extending the two-sector specific factor production model to three sectors to make the model more relevant for a one-party state such as China. This model suggests that the switch from taxing to subsidizing the agricultural sector depends not only on changes in the economy’s structure but, more critically, on the underlying political support from heterogeneous interest groups in the course of economic development. The equilibrium agricultural protection level is determined by equating the marginal political returns from supporting farmers with the marginal political costs from opposing groups (including manufacturers).

Suggested Citation

  • Wenshou Yan & Kaixing Huang, 2023. "Changes Of Economic Structure, Interest Groups And Agricultural-Trade Protection: The Case Of China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(01), pages 119-140, March.
    • Handle: RePEc:wsi:serxxx:v:68:y:2023:i:01:n:s0217590819500310
    DOI: 10.1142/S0217590819500310
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    More about this item

    Keywords

    Agricultural protection levels; three-sector specific factor model; political support model; labor migration; China;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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