Effects of agricultural market policy on crop production in China

Lu, W. (2002). Effects of agricultural market policy on crop production in China. Food Policy 27 (5) 561-573. 10.1016/S0306-9192(02)00066-0.

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This paper investigates the effects of Chinese market policy on crop production in the reform process. After a brief review of the policy changes due to the reform, the theoretical significance of Chinese market policies for crop production is demonstrated diagrammatically. It is shown that under the current market system the production of main crops is significantly influenced by both market and quota prices. While relatively high quota reduces the influence of market prices on production, relative price changes between competing crops will lead to shifting farmers’ cultivation preferences if inputs are constant. Empirical analysis, based on cross-section data for the period 1985–1997 from the province of Zhejiang, confirms these hypotheses. The effects of policy variables, however, prove to be crop-specific. If the potential of crop production in China is to be better used, an even more market-oriented agricultural policy is required.

Item Type: Article
Uncontrolled Keywords: China; Market policy; Crop production
Research Programs: Sustainable Rural Development (SRD)
Bibliographic Reference: Food Policy; 27(5-6):561-573 [2002]
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 02:14
Last Modified: 27 Aug 2021 17:37
URI: https://pure.iiasa.ac.at/6547

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