Long-Run Impacts of China's WTO Accession on Farm-Nonfarm Income Inequality and Rural Poverty

Many fear China's accession to the World Trade Organization (WTO) will impoverish its rural people by way of greater import competition in its agricultural markets. Anderson, Huang, and Ianchovichina explore that possibility bearing in mind that, even if producer prices of some (land-intensive) farm products fall, prices of other (labor-intensive) farm products could rise. Also, the removal of restrictions on exports of textiles and clothing could boost town and village enterprises, so demand for unskilled labor for nonfarm work in rural areas may grow even if demand for farm labor in aggregate falls. New estimates, from the global economywide numerical simulation model known as GTAP, of the likely changes in agricultural and other product prices as a result of WTO accession are drawn on to examine empirically the factor reward implications of China's WTO accession. The results suggest farm-nonfarm and Western-Eastern income inequality may well rise in China but rural-urban income inequality need not. The authors conclude with some policy suggestions for alleviating any pockets of farm household poverty that may emerge as a result of WTO accession.

Bibliographic Details

Main Authors:	Huang, Jikun, Anderson, Kym, Ianchovichina, Elena
Language:	English en_US
Published:	World Bank, Washington, DC 2003-05
Subjects:	ACCESSION PROCESS, ACCESSION PROTOCOL, ADEQUATE SAFETY NETS, ADJUSTMENT ASSISTANCE, AGRICULTURAL COMMODITIES, AGRICULTURAL GOODS, AGRICULTURAL INCOMES, AGRICULTURAL LAND, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL PRODUCTS, AGRICULTURAL PROTECTION, AGRICULTURAL RETURNS, AGRICULTURAL SECTOR, AGRICULTURAL TRADE, AGRICULTURE, ANIMAL, ANIMAL FEEDS, BARLEY, BILATERAL TRADE, BIOTECHNOLOGY, CAPACITY BUILDING, CAPITA INCOMES, CAPITAL GAIN, CLOTHING TRADE, COARSE GRAINS, COLLECTIVE FARMS, COMMODITY, COMPARATIVE ADVANTAGE, COMPLEMENTARY POLICIES, CONSTANT RETURNS TO SCALE, CONSUMER PRICE INDEX, CONSUMER PRICES, CONSUMERS, CONSUMPTION PATTERNS, COTTON, CROP, DISPUTE SETTLEMENT, DOMESTIC CONSUMPTION, DOMESTIC DEMAND, DOMESTIC SUPPORT, DOWNWARD PRESSURE, DUTY EXEMPTIONS, ECONOMIC ANALYSIS, ECONOMIC CIRCUMSTANCES, ECONOMIC EFFECTS, ECONOMIC GROWTH, ECONOMIC POLICY REFORM, ECONOMIC WELFARE, EDIBLE OILS, ELASTICITY, EMPIRICAL ANALYSIS, EMPLOYMENT, EQUILIBRIUM, EXCHANGE RATE, EXPLOITATION, EXPORT SUBSIDIES, EXPORTS, FACTOR MARKETS, FARM, FARM ACTIVITIES, FARM EARNINGS, FARM EMPLOYMENT, FARM HOUSEHOLDS, FARM INCOMES, FARM LAND, FARM LEVEL, FARM PRODUCTIVITY, FARM PRODUCTS, FARM SECTOR, FARM WORK, FARM WORKERS, FARMER, FARMER INCOMES, FARMERS, FARMING, FARMS, FEED, FINANCIAL MARKETS, FINANCIAL SYSTEM, FISH, FISH PRODUCTS, FOOD PRODUCTION, FOOD PRODUCTS, FOOD SECURITY, FOODGRAINS, FOREIGN INVESTMENT, FRUITS, FULL EMPLOYMENT, GDP, GENERAL EQUILIBRIUM MODEL, GLOBAL ECONOMY, GLOBAL TRADE, GLOBAL TRADE ANALYSIS, GRAIN, HORTICULTURE, HUMAN CAPITAL, IMPORTS, INCOME, INCOME DISTRIBUTION, INCOME GROWTH, INCOME INEQUALITY, INDIVIDUAL COUNTRIES, INDUSTRIAL PRODUCTS, INDUSTRIALIZATION, INTENSIVE PRODUCTS, INTERMEDIATE GOODS, INTERMEDIATE INPUTS, LABOR MARKET, LABOR MARKET DISTORTIONS, LABOR MARKETS, LABOR-INTENSIVE, LIVESTOCK, LIVESTOCK PRODUCTS, MAIZE, MARKET ACCESS, MARKET DISTORTIONS, MARKET PRICES, MEAT, METALS, MILK, MONOPOLIES, NEGATIVE PROTECTION, NET IMPORTS, NON-AGRICULTURAL EMPLOYMENT, NON-TARIFF MEASURES, OIL, OILSEEDS, PER CAPITA INCOMES, PERFECT COMPETITION, POLICY CHANGE, POLICY CHANGES, POLICY MAKERS, POOREST HOUSEHOLDS, POPULATION GROWTH, POVERTY ALLEVIATION, POVERTY REDUCTION, PRICE CHANGES, PRODUCE, PRODUCERS, PRODUCT MARKETS, PRODUCT PRICES, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROTECTIONISM, QUOTAS, RAPID INDUSTRIALIZATION, REAL WAGES, RICE, ROUND AGREEMENT, RURAL AREAS, RURAL HOUSEHOLDS, RURAL SECTOR, RURAL-URBAN INCOME INEQUALITY, SERVICE ACTIVITIES, SERVICE SECTORS, SOYBEAN, STATE TRADING, STRUCTURAL CHANGE, SUGAR, SUGAR CROPS, TARIFF CUTS, TARIFF RATE QUOTA, TARIFF RATE QUOTAS, TARIFF RATES, TARIFF REDUCTIONS, TAX REVENUE, TAXATION, TOBACCO, TRADE BALANCE, TRADE FLOWS, TRADE LIBERALIZATION, TRADE POLICIES, TRADE POLICY, TRADE REFORM, TRADING PARTNERS, UNEMPLOYMENT, URBAN AREAS, URBAN HOUSEHOLDS, URUGUAY ROUND, VEGETABLES, VILLAGE ENTERPRISES, WAGES, WHEAT, WOOL, WORLD TRADE, WTO, WTO ACCESSION, WTO COMMITMENTS, WTO MEMBERS, WTO MEMBERSHIP RURAL POVERTY, ECONOMIC POLICY, HOUSEHOLDS, AGRICULTURAL IMPORTS, GRAINS, FINANCIAL SYSTEMS, FRUIT, TARIFFS, CROPS, WTO MEMBERSHIP, RURAL POVERTY,
Online Access:	http://documents.worldbank.org/curated/en/2003/05/2384815/long-run-impacts-chinas-wto-accession-farm-nonfarm-income-inequality-rural-poverty https://hdl.handle.net/10986/18214
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