Effects of Agricultural Subsidy Policies on Comparative Advantage and Production Protection in China

Shi Zheng, Dayton Lambert, Sishu Wang and Zhigang Wang

Chinese Economy, 2013, vol. 46, issue 1, 20-37

Abstract: China has recently implemented a series of agricultural policy reforms to expand its agricultural sector and increase farm income. Subsidies supporting agricultural sector growth are the favored policy even though they are known to exert a distorting effect on markets. Using a Policy Analysis Matrix (PAM) model, we estimated the extent to which subsidies have distorted domestic markets and whether they have positively influenced China's comparative advantages in crop production and increased farm income. Results suggest that the effective protection of soybean and corn production has not significantly enhanced comparative advantage with respect to these commodities, while the effective protection of production factors used to produce wheat increased comparative advantage in wheat production.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=5H346TW2Q56WM167 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:chinec:v:46:y:2013:i:1:p:20-37

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MCES20

Access Statistics for this article

More articles in Chinese Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().