Will China's WTO Accession Worsen Farm Household Incomes?

Posted: 6 Apr 2005

See all articles by Kym Anderson

Kym Anderson

University of Adelaide - Centre for International Economic Studies (CIES); Centre for Economic Policy Research (CEPR); Australian National University

Jikun Huang

Chinese Academy of Sciences (CAS)

Elena Ianchovichina

World Bank

Abstract

Many fear China's accession to the World Trade Organization (WTO) will impoverish its farmers via greater import competition in its agricultural markets. We explore that possibility bearing in mind that, even if producer prices of some (land-intensive) farm products fall, prices of other (labor-intensive) farm and nonfarm products could rise. New estimates, from the global, economy-wide numerical simulation model known as Global Trade Analysis Project (GTAP), of the likely changes in agricultural and other product prices as a result of WTO accession, are drawn on to examine empirically the real income implications of China's WTO accession. The results suggest farm-nonfarm income inequality may well rise within China but rural-urban income inequality need not. The article concludes with some policy suggestions for alleviating any pockets of farm household poverty that may emerge as a result of WTO accession.

Keywords: WTO accession, China's economic reform, Income inequality, Farm poverty

JEL Classification: O19, O53, P31

Suggested Citation

Anderson, Kym and Huang, Jikun and Ianchovichina, Elena, Will China's WTO Accession Worsen Farm Household Incomes?. China Economic Review, Vol. 15, No. 4, pp. 373-481, 2004. Available at SSRN: https://ssrn.com/abstract=694282

Kym Anderson (Contact Author)

University of Adelaide - Centre for International Economic Studies (CIES) ( email )

School of Economics
Adelaide SA 5005
Australia
+61 8 8313 4712 (Phone)
+61 8 8223 1460 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University ( email )

Arndt-Corden Dept of Economics
Coombs Building
Canberra, AK ACT 2600
Australia
+61 8 8313 4712 (Phone)

HOME PAGE: http://publicpolicy.anu.edu.au/crawford_people/content/staff/acde/kanderson.php

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

Elena Ianchovichina

World Bank ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-8910 (Phone)
202-522-1159 (Fax)

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