Tracking Distortions in Agriculture : China and Its Accession to the World Trade Organization
This article examines the impacts of China's accession to the World Trade Organization (WTO) on prices in its agricultural sector. The analysis uses a new methodology to estimate nominal protection rates in China's agricultural sector before its accession to the WTO. These new measures account for differences in commodity quality within China and between China and world markets. The analysis shows that some of China's agricultural commodities are well above world market prices and others are well below. The article also assesses market integration and efficiency in China. It finds high degrees of integration between coastal and inland markets and between regional and village markets. The remarkable improvements in market performance in recent years mean that if increased imports or exports affect China's domestic price near the border, producers throughout most of China will feel the price shifts.
Summary: | This article examines the impacts of
China's accession to the World Trade Organization (WTO)
on prices in its agricultural sector. The analysis uses a
new methodology to estimate nominal protection rates in
China's agricultural sector before its accession to the
WTO. These new measures account for differences in commodity
quality within China and between China and world markets.
The analysis shows that some of China's agricultural
commodities are well above world market prices and others
are well below. The article also assesses market integration
and efficiency in China. It finds high degrees of
integration between coastal and inland markets and between
regional and village markets. The remarkable improvements in
market performance in recent years mean that if increased
imports or exports affect China's domestic price near
the border, producers throughout most of China will feel the
price shifts. |
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