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Growing together or growing apart a village level study of the impact of the Doha Round on rural China (Inglês)

Most studies of the opening of the Chinese economy focus at the national level. The few existing disaggregated analyses are limited to analyzing changes in agricultural production. The authors use an innovative village equilibrium model that accounts for nonseparability of household production and consumption decisions. This allows them to analyze the impact of trade liberalization on household production, consumption, and off-farm employment, as well as the interactions among these three aspects of household decisions. They use the village model to analyze the impact of price changes and labor demand, the two major pathways through which international trade affects households. Analyzing the impact of trade liberalization for one village in the Jiangxi province of China, the authors find changes in relative prices and outside village employment to have opposite impacts on household decisions. At the household level the impact of price changes dominates the employment impacts. Comparing full trade liberalization and the more limited Doha scenario, reactions are more modest in the latter case for most households, but the response is nonlinear to increasing depth of trade reforms. This is explained by household-specific transaction (shadow) prices in combination with endogenous choices to participate in the output markets. Rising income inequalities are a growing concern in China. Whether trade liberalization allows incomes to grow together or to grow apart depends on whether one accounts for the reduction in consumption demand when household members migrate. Assessing the net effect on the within-village income distribution, the authors find that poorer households that own draught power gain most from trade liberalization. The households that have to rely on the use of own labor for farm activities and are not endowed with traction power, nor with a link to employment opportunities in the prospering coastal regions, have fewer opportunities for adjustment.

Detalhes

  • Autor

    Kuiper, Marijke, Van Tongeren,Frank Willem

  • Data do documento

    2005/09/01

  • TIpo de documento

    Documento de trabalho sobre pesquisa de políticas

  • No. do relatório

    WPS3696

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    China,

  • Região

    Leste Asiático e Pacífico,

  • Data de divulgação

    2010/07/01

  • Disclosure Status

    Disclosed

  • Nome do documento

    Growing together or growing apart ? a village level study of the impact of the Doha Round on rural China

  • Palavras-chave

    agricultural economics;impact of price changes;impact of trade liberalization;draught power;computable general equilibrium model;land labor;full liberalization;rice production;off-farm employment;shadow wage;shadow price;household survey data;full trade liberalization;Applied General Equilibrium;marginal value product;agricultural labor force;demand for labor;per capita consumption;rising income inequality;scarcity of labor;source income;source of income;consumption decision;difference in income;high population density;term of dollar;increase income inequality;reduction in consumption;average income gain;agricultural price index;cost of labor;determinants of migration;share of income;trade liberalization increases;linear expenditure system;rent of land;share of transfer;change in prices;rural household consumption;village level analysis;general equilibrium analysis;initial market share;price for food;increase in consumption;study of factors;rural labor market;ownership of land;agricultural household model;global trade reform;intensive pig production;rural-urban income inequality;price for pigs;relative price change;local labor market;market clearing level;credit cooperatives;formal banking sector;village level change;transfer of money;difference among household;land tenure reform;supply of land;rural credit cooperative;household production;Livestock Production;household groups;village employment;household decision;output price;macro level;agricultural input;animal traction;price band;employment opportunities;employment opportunity;labor demand;irrigated land;household level;village economy;agricultural production;rural-urban migration;adult equivalent;sale price;household income;poor household;land market;agricultural output;net effect;food economy;price effect;production function;farm household;market integration;supply response;missing market;production response;output market;household endowments;driving force;coastal region;production decision;transaction cost;village supply;credit market;disaggregated analysis;International Trade;selling price;household demand;income source;external input;net impact;household access;Temporary Migration;level of change;production activity;informal credit;market price;survey household;household value;agricultural activity;adult consumer;rural area;food production;village average;labor-intensive sectors;comparative advantage;coastal city;coastal provinces;increased supply;supply curve;supply function;purchase price;income effect;consumption good;livestock increase;local market;increased demand;export quota;agricultural good;net result;constant price;effective price;empirical work;household questionnaire;farm production;standard practice;grain market;conceptual framework;employment effect;Employment Change;market emergence;wage hike;reform scenario;european commission;tariff cut;calibration procedure;surplus labor;household behavior;international integration;preferential policies;property right;welfare gains;rural population;market imperfection;consumption response;household analysis;migrant employment;intermediate input;standard economic;standard approach;credit rationing;surplus commodity;commodity market;price falls;price shock;household effects;aggregate response;market failure;equivalent variation;regional inequality;national market;migrant labor;rural migration;survey results;land right;input market;income gap;transactions cost;separate account;household output;rental market;paddy field;regional impact;restricted access;urban growth;common use;coastal area;landless household;competitive activity;adjustment response;estimation procedure;marginal production;migrant household;capital flow;farm value;fixed share;land rent;mathematical structure;differential impact;insufficient information;conversion factor;consumption datum;survey sample;clear view;policy perspective;global economy;domestic reform;export opportunity;export opportunities;perfect market;food price;consumption side

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