Agricultural Trade Reform and Rural Prosperity: Lessons from China

48 Pages Posted: 6 May 2008 Last revised: 22 Aug 2022

See all articles by Jikun Huang

Jikun Huang

Chinese Academy of Sciences (CAS)

Will J. Martin

International Food Policy Research Institute (IFPRI)

Yu Liu

Chinese Academy of Sciences (CAS) - Center for Chinese Agricultural Policy (CCAP)

Scott Rozelle

Stanford University - Freeman Spogli Institute of International Studies

Date Written: April 2008

Abstract

Tariffs on agricultural products fell sharply in China both prior to, and as a consequence of, China's accession to the WTO. The paper examines the nature of agricultural trade reform in China since 1981, and finds that protection was quite strongly negative for most commodities, and particularly for exported goods, at the beginning of the reforms. Since then, the taxation of agriculture has declined sharply, with the abolition of production quotas and procurement pricing, and reductions in trade distortions for both imported and exported goods. Rural well-being has improved partly because of these reforms, and also because of strengthening of markets, public investment in infrastructure, research and development, health and education, and reductions in barriers to mobility of labor out of agriculture. Many challenges remain in improving rural incomes and reducing rural poverty.

Suggested Citation

Huang, Jikun and Martin, William J. and Liu, Yu and Rozelle, Scott, Agricultural Trade Reform and Rural Prosperity: Lessons from China (April 2008). NBER Working Paper No. w13958, Available at SSRN: https://ssrn.com/abstract=1129720

Jikun Huang (Contact Author)

Chinese Academy of Sciences (CAS) ( email )

Center for Chinese Agricultural Policy (CCAP)
No. Jia 11, Datun Road
Anwai, Beijing, 100101
China
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HOME PAGE: http://www.ccap.org.cn/english/ccapstaff.asp?PID=1380

William J. Martin

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Yu Liu

Chinese Academy of Sciences (CAS) - Center for Chinese Agricultural Policy (CCAP) ( email )

Jia 11, Datun Road
Beijing 100101
China

Scott Rozelle

Stanford University - Freeman Spogli Institute of International Studies ( email )

Stanford, CA 94305
United States

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