Changes in Chinese Competitiveness in Major Food Products: Implications for WTO Membership |
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Authors: | Ziping Wu Ken Thomson |
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Institution: | 1. Department of Agricultural and Food Economics, The Queen's University of Belfast, Newforge Lane, Belfast BT9 5PX, UK;2. Department of Agriculture &3. Forestry, University of Aberdeen, 581 King Street, Aberdeen AB24 5UA, Scotland, UK |
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Abstract: | Chinese entry to the WTO in December 2001 marks a new phase in agricultural trade, both nationally and globally. After a context review of Chinese agriculture and WTO-related policy issues, this paper first uses a Balassa index approach to examine China's relative competitiveness in some major food products over the period since 1985, followed by an analysis of price-cost ratios and production cost structures for these products. It is found that China has revealed comparative advantages in meat products but disadvantages in cereals. With limited land resources, its production and trade competitiveness has declined despite rapid substitution of capital for labour, due to a marked rise in relative labour price in agriculture. In the long run, it is expected that WTO membership will boost Chinese agricultural trade, but its impact on competitiveness will probably depend more on production costs, and will differ between crops and animal products. |
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Keywords: | Chinese Agriculture Competitiveness Wto Production Costs |
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