Agric. Econ. - Czech, 2012, 58(4):157-164 | DOI: 10.17221/122/2011-AGRICECON
Impacts of the US Farm Bill 2008 on China's agricultural production and rural poverty
- 1 College of Economics and Management, China Agricultural University, P.R. China
- 2 Leibniz Institute of Agricultural Development in Central and Eastern Europe
Whether the US Farm Bill 2008 has any impacts on China's agriculture, is highly related to the China's rural poverty alleviation and it deserves to be explored to see what will happen. According the existing empirical studies in the past, we expect that the US Farm Bill 2008 will exert an influence on the agricultural production and rural poverty in developing countries, especially China. In order to fully capture such an effect, we link two equilibrium models together: the multinational CGE model - GTAP and the China's partial equilibrium model - the China's Agricultural Policy Simulation and Projection Model (CAPSiM). A scenario based on the US Farm Bill 2008 will be constructed and compared with the baseline. A more liberalized scenario is also built for the simulation. The results have shown that the US Farm Bill 2008 has a little positive impact on the China's farmer income, and that the more liberalized the policy is, the more China will benefit.
Keywords: US Farm Bill, China, Poverty, CGE
Published: April 30, 2012 Show citation
References
- Balkhausen O., Banse M., Grethe H. (2008): Modelling CAP decoupling in the EU: A Comparison of selected simulation models and results. Journal of Agricultural Economics, 59: 57-71.
Go to original source...
- Bourguignon F., Bussolo M., Pereira da Silva L.A. (eds.) (2008): Trade Options for Latin America. A Poverty Assessment Using Macro-Micro Linkages. Palgrave Macmillan, Washington.
- Commodity Estimates Book (2009). FY 2010 Mid-Session Review Released August 25, 2009. USDA.
- Devadoss S. (2002): Domestic Support and WTO Negotiations from Developing Countries' Perspectives. No 36667. In: 2002 Annual Meeting, July 28-31, 2002, Long Beach, California from Western Agricultural Economics Association.
- Dimaranan B., McDougall R. (2006): GTAP 6 Data Base Documentation - Chapter 02: Guide to the GTAP Data Base. Center for Global Trade Analysis Project, Purdue University.
- European Commission (2009): The New US Farm Bill Zooming in on ACRE. Monitoring Agri-trade Policy (MAP) Newsletter, 01/09 - February 2009.
- Farm Service Agency of the US Department of Agriculture (FSA) (2008a): Direct and Counter-cyclical Payment Program (DCP). Fact Sheets, December 2008, Farm Service Agency.
- Farm Service Agency of the US Department of Agriculture (FSA) (2008b): 2008 Crop Year Buy-in for Disaster Assistance Programs, Fact Sheet, Washington DC.
- Hertel T., Ivanic M., Preckel P., Cranfield J. (2003): Trade liberalization and the structure of poverty in developing countries. GTAP Working Paper No. 25, Center for Global Trade Analysis Project, Purdue University.
Go to original source...
- Hertel T.W. (1997): Global trade analysis: modeling and applications. Cambridge University Press, New York.
- Huang J., Li N., Rozelle S. (2003a): Trade reform, household effects and poverty in rural China. American Journal of Agricultural Economics, 85: 1292-1298.
Go to original source...
- Huang J., Zhang L., Li Q., Qiu H. (2003b): National and regional economic development scenarios for China's food economy projections in the 21st Century. Working Paper, IIASA, Laxenburg.
- Huang J., Rozelle S., Chang M. (2004a): Tracking distortions in agriculture: China and its accession to the World Trade Organization. The World Bank Economic Review, 18: 59-84.
Go to original source...
- Huang J., van Tongeren F., van Meijl H., Li N. (2004b): Methodologies and data. In: van Tongeren F., Huang J. (eds.): China's Food Economy in the Early 21st Century: Development of China's Food Economy and its Impact on Global Trade and on the EU. Agricultural Economics Research Institute (LEI), The Hague.
- Malcolm G. (1998): Adjusting tax rates in the GTAP model. GTAP Technical Paper No. 12. Purdue University, West Lafayette.
- Narayanan, G.B. (2008): Overview of GTAP 7 Data Base and the Data Goal. Center for Global Trade Analysis, Purdue University, West Lafayette.
- Toth F., Cao G., Hizsnyk E. (2003): Regional population projection for China. CHINAGRO Project: Report of WP 1.8.
- USDA (2008): 2008 Farm Bill Side-By-Side. Available at http://www.ers.usda.gov/FarmBill/2008/Titles/TitleIcommodities.htm
- van Meijl H., van Tongeren F. (2002): International Diffusion of Gains from Biotechnology and the European Union's Common Agricultural Policy. In: 5 th Annual Conference on Global Economic Analysis. Taipeh, Taiwan, June 5-7, 2002.
- Walmsley T.L., Betina V. D., Robert A.M. (2000): A base case scenario for the dynamic GTAP model. Center for Global Trade Analysis, Purdue University, West Lafayette.
- Winters L.A., Mcculloch N., McKay A. (2003): Trade Liberalisation and Poverty: The Empirical Evidence. In: 6th Annual Conference on Global Economic Analysis. The Hague, The Netherlands, June 12-14, 2003.
This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.