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Are China’s grain trade policies effective in the stabilization of domestic food prices? An investigation based on a structural break regime switching model

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  • Lu, Jie
  • Zhu, Xinkai
  • Yu, Zhonghua

Abstract

As the base price, grain prices have played considerably important role in China’s macro-economy and social price level. In this study we investigate the fluctuation characteristics of some main crops of China’s grain during the past two decades by using Structural Break Regime Switching Model. We find that China’s grain price growth has become more stable since 2004 with narrowing low-and high-growth regimes. The implementation of minimum grain purchase price policy, improvement of market structure and diversification of acquisitions which improve farmers’ overall earning expectation and stabilize food price, are the most important motivating factors.

Suggested Citation

  • Lu, Jie & Zhu, Xinkai & Yu, Zhonghua, 2013. "Are China’s grain trade policies effective in the stabilization of domestic food prices? An investigation based on a structural break regime switching model," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149171, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149171
    DOI: 10.22004/ag.econ.149171
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    Keywords

    Agricultural and Food Policy;

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