Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets

Posted: 1 Jun 2002

See all articles by Albert Park

Albert Park

University of Michigan at Ann Arbor - The William Davidson Institute; Harvard University - Fairbank Center for East Asian Research

Hehui Jin

Stanford University

Scott Rozelle

University of California, Davis - Department of Agricultural and Resource Economics

Jikun Huang

Chinese Academy of Sciences (CAS)

Abstract

Using trimonthly Chinese provincial grain prices from 1988 to 1995, we estimate a parity-bounds model of interregional trade for four subperiods to characterize how multiple aspects of market performance change during the process of economic transition. For each period, we estimate the extent to which arbitrage opportunities are realized by traders, the transaction costs between location pairs, and the likelihood that regions do not trade. Trade restrictions cannot explain the pattern of uneven market development over time. Infrastructure bottlenecks, managerial incentive reforms, and production specialization policies, all were likely important factors affecting market performance.

Suggested Citation

Park, Albert Francis and Jin, Hehui and Rozelle, Scott and Huang, Jikun, Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets. Available at SSRN: https://ssrn.com/abstract=308791

Albert Francis Park (Contact Author)

University of Michigan at Ann Arbor - The William Davidson Institute ( email )

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

Harvard University - Fairbank Center for East Asian Research

1737 Cambridge Street
Coolidge Hall 308
Cambridge, MA 02138

Hehui Jin

Stanford University ( email )

Stanford, CA 94305
United States

Scott Rozelle

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
530-752-9897 (Phone)

Jikun Huang

Chinese Academy of Sciences (CAS) ( email )

Center for Chinese Agricultural Policy (CCAP)
No. Jia 11, Datun Road
Anwai, Beijing, 100101
China
+86 10 64889440 (Phone)
+86 10 64856533 (Fax)

HOME PAGE: http://www.ccap.org.cn/english/ccapstaff.asp?PID=1380

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
963
PlumX Metrics