Weighing Up Market Mechanism and Regulated Distribution: China's Dream to Feed Itself Under Spatially-Imbalanced Development

Huey-Lin Lee and Scott Y. Lin , “Weighing up Market Mechanism and Regulated Distribution: China’s Dream to Feed Itself under Spatially-imbalanced Development.” In China Dreams: China’s New Leadership and Future Impacts, edited by Chih-shian Liou and Arthur S. Ding, Singapore: World Scientific (2015)

Posted: 20 Apr 2019 Last revised: 22 Apr 2019

See all articles by Huey-Lin Lee

Huey-Lin Lee

National Chengchi University (NCCU) - Department of Economics

Scott Y. Lin

Graduate Institute of Development Studies

Date Written: 2015

Abstract

This paper argues that the PGRS policy has set up partitions between provincial food markets and discouraged fully liberalized nationwide food distribution, contributing to insecure food accessibility in China. As long as China maintains its rapid economic development, which is notably spatially imbalanced, this PGRS policy will further undermine its food security dream. Therefore, the policy needs to be adjusted by introducing more market mechanisms. In the second section, a multiregional multisector computable general equilibrium (CGE) model — the SinoTERM model — is used to simulate the pair of contrasting scenarios and to investigate whether the empirical results support this argument.

Keywords: Provincial Governor’s Responsibility System (PGRS); Chinese Food Security; Computable General Equilibrium (CGE) Model; SinoTERM Model

Suggested Citation

Lee, Huey-Lin and Lin, Scott Y., Weighing Up Market Mechanism and Regulated Distribution: China's Dream to Feed Itself Under Spatially-Imbalanced Development (2015). Huey-Lin Lee and Scott Y. Lin , “Weighing up Market Mechanism and Regulated Distribution: China’s Dream to Feed Itself under Spatially-imbalanced Development.” In China Dreams: China’s New Leadership and Future Impacts, edited by Chih-shian Liou and Arthur S. Ding, Singapore: World Scientific (2015), Available at SSRN: https://ssrn.com/abstract=3161271

Huey-Lin Lee

National Chengchi University (NCCU) - Department of Economics

64 Sec. 2, Zhi-Nan Rd.
Taipei, 11605
Taiwan
886229390344 (Fax)

Scott Y. Lin (Contact Author)

Graduate Institute of Development Studies ( email )

No. 64, Zhinan Road
Section 2
Taipei, 11605
Taiwan

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