The Regional Heterogeneity of the Impact of Agricultural Market Integration on Regional Economic Development: An Analysis of Pre-COVID-19 Data in China

Xinru Miao (), Shaopeng Wang (), Jiqin Han, Zhaoyi Ren, Teng Ma and Henglang Xie
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Xinru Miao: College of Economics and Management, Nanjing Agricultural University, Nanjing 210095, China
Shaopeng Wang: Faculty of Agriculture, Universiti Putra Malaysia, Serdang 43400, Malaysia
Jiqin Han: College of Economics and Management, Nanjing Agricultural University, Nanjing 210095, China
Zhaoyi Ren: School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia
Teng Ma: School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia
Henglang Xie: School of Business and Economics, Universiti Putra Malaysia, Serdang 43400, Malaysia

Sustainability, 2024, vol. 16, issue 5, 1-33

Abstract: The abrupt onset of the COVID-19 pandemic in late 2019 significantly disrupted China’s domestic agricultural production and supply chain stability. Local governments, responding to urgent circumstances, implemented various trade restrictions that profoundly affected regional economic development. This study, covering data from 2010 to 2019 across 31 provinces, investigates agricultural market integration and regional economic development. Employing a dynamic spatial panel Durbin model, it systematically analyzes the complex relationship between these variables. International trade variables related to agricultural products are then introduced to examine their “substitution effect” in promoting regional economic development through agricultural market integration. The research findings are summarized as follows: (1) disregarding international agricultural trade, a one-unit increase in the agricultural market integration index corresponds to a 0.156% rise in regional economic development. (2) In an open economy, the substitution coefficients for agricultural imports, exports, and total trade concerning market integration are −0.00097, −0.0012, and −0.0038, respectively. (3) The strength of the substitution effect from the international agricultural market to the domestic market varies regionally, with coefficients of −0.00099 and −0.00217 for the eastern and western regions, respectively.

Keywords: agricultural market integration; agricultural foreign trade; substitution effect; regional economic development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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