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Trade Policy Responses to Food Price Crisis and Implications for Existing Domestic Support Measures: The Case of China in 2008

Wusheng Yu () and Hans Jensen ()

No 126632, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

Abstract: Many national governments around the world applied export restrictions for achieving domestic market stabilization during the 2007/8 world food price crisis. However, current literature says little about how these export restrictions interact with existing domestic support measures in jointly determining domestic market outcomes. This paper analyzes this interaction by providing a quantitative assessment on how increased spending on agricultural domestic support in China offset the negative effects on grain production caused by the country‟s export restrictions and how these two types of measures jointly moderated rises of domestic grain prices. In particular, domestic and trade measures on key agricultural inputs such as fertilizers are shown to contribute significantly to expand grain outputs and reduce domestic market prices. While the short term goal in stabilizing domestic grain prices was achieved through these measures, large fiscal and efficiency costs were incurred, especially considering how the short term export restrictions seemingly necessitated the extra spending on input based domestic subsidies.

Keywords: Environmental Economics and Policy; Food Security and Poverty (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2012-08
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Related works:
Journal Article: Trade policy responses to food price crisis and implications for existing domestic support measures: the case of China in 2008 (2014) Downloads
Working Paper: Trade policy responses to food price rises and implications for existing domestic support measures: the case of China in 2008 (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:126632

DOI: 10.22004/ag.econ.126632

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