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Empirical analysis of agricultural trade between EU and China: Explanation behind China's growing agrifood imports

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  • Huan-Niemi, Ellen
  • Niemi, Jyrki S.

Abstract

This study attempts to identify and measure quantitatively the effects of changing economic environment and trade policies on China’s agricultural imports from the EU as well as globally. The approach is to model behavioural relationships in the agricultural trade between China and the EU by using annual trade data from 1986 to 2005. The results indicate that Chinese agricultural imports are relatively inelastic to absolute price changes, but relative price changes significantly affect the market shares of EU exports due to price competition. Trade liberalisation in the form of tariff reductions is trivial in changing the quantity of China’s agricultural imports from the EU. China’s growing agrifood imports has been fuelled by rapid income growth of its population.

Suggested Citation

  • Huan-Niemi, Ellen & Niemi, Jyrki S., 2008. "Empirical analysis of agricultural trade between EU and China: Explanation behind China's growing agrifood imports," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43962, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:43962
    DOI: 10.22004/ag.econ.43962
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    References listed on IDEAS

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    Cited by:

    1. Pawlak, Karolina & Kołodziejczak, Małgorzata & Xie, Yumei, 2016. "Changes In Foreign Trade In Agri-Food Products Between The Eu And China," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 42(4).

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