The Trade and Welfare Effects of State Trading in China with Reference to COFCO

18 Pages Posted: 5 Apr 2010

See all articles by Steve McCorriston

Steve McCorriston

University of Exeter Business School

Donald MacLaren

University of Melbourne - Department of Economics

Abstract

The use of state trading to manage imports and exports has been a long-standing feature of China’s agricultural trade regime. While the use of state trading was modified by China’s accession to the WTO, state trading still dominates for some commodities, even though there have been recent attempts to diminish its importance. In this paper, we analyse the potential trade distorting effect of COFCO on market access and export competition by drawing on some recent research on the impact of STEs on agricultural trade. By using a calibrated model of China’s imports of wheat and exports of maize, we are able to quantify the size of the trade distortions.

Suggested Citation

McCorriston, Steve and MacLaren, Donald, The Trade and Welfare Effects of State Trading in China with Reference to COFCO. World Economy, Vol. 33, No. 4, pp. 615-632, April 2010. Available at SSRN: https://ssrn.com/abstract=1583173 or http://dx.doi.org/10.1111/j.1467-9701.2009.01237.x

Steve McCorriston

University of Exeter Business School ( email )

Streatham Court
Xfi Building, Rennes Dr.
Exeter, EX4 4JH
United Kingdom

Donald MacLaren

University of Melbourne - Department of Economics ( email )

Victoria 3010, 3010
Australia
(61) 3 8344-5035 (Phone)
(61) 3 8344-6899 (Fax)

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