Rice, wheat, and corn supply response in China

Jan Brockhaus, Jikun Huang, Jiliang Hu, Matthias Kalkuhl, Joachim von Braun and Guolei Yang

No 205988, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: This study analyses the indica rice, winter wheat, and corn production response to prices, rainfall, temperatures, and other parameters for the agriculturally most important provinces in China. System and difference GMM estimators are used as the number of groups is large compared to the time periods and the production response is a dynamic process. We find that all crops strongly respond to prices around planting time and shortly after while prices further away from the time of planting turn out insignificant. Furthermore, rainfall affects the production positively and high temperatures negatively for all crops. The results for other variables differ between the crops. Mixed outcomes are found for irrigation, fertilizer prices, area affected by droughts and interaction terms. Results suggest that irrigation is only partly able to compensate for impacts of weather variability. The presented method for analyzing the price response at different points in time may also be used for general model specification tests.

Keywords: Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Food Security and Poverty; Production Economics (search for similar items in EconPapers)
Pages: 18
Date: 2015-05-28
New Economics Papers: this item is included in nep-agr and nep-cna
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205988

DOI: 10.22004/ag.econ.205988

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