Agriculture Reference
In-Depth Information
Input-output tables in the agricultural sector.
We overcame some of
the shortcomngs n the database by takng advantage of data that were
collected by the Natonal Development and Reform Commsson (NDRC)
and government organsatons. The NDRC collects data on the costs of
producton of all of Chna's major crops and lvestock ndustres. The data
set contans nformaton on quanttes and total expendture of labour and
materal nputs as well as expendture on a large number of mscellaneous
costs such as tax, transportation and marketing. Each farmer reports
output and the total revenue earned from crops or lvestock. The data
were used prevously n analyses of Chna's agrcultural supply and nput
demand (Huang and Rozelle 1996; World Bank 1997). Similar methods have
been used for other studies (Huang and Yang 2006; Tongeren and Huang
2004). In this way, we ensure the balance and consistency of input-output
relatonshps among sectors.
Improving own-price and income elasticities for China.
We ncorp-
orated the most up-to-date estmates for prce and ncome elastctes of
demand for various foods in China (Fan et al. 1995; Huang and Bouis 1996;
Huang and Rozelle 1998). Table A13.4 summarises the major adjustments
that have been made. In addition, we assume that income elasticities of
demand for varous commodtes wll change as ncomes ncrease. Ths s an
essental assumpton for long-term smulatons. Based on other emprcal
studies (Huang and Bouis 1996; Huang and Rozelle 1998), we assume
that food income elasticities decline with income growth (Table A13.4).
Usng nformaton on uncompensated ncome elastctes and own-prce
elasticities, we recalibrate the expansion and substitution parameters
for the CDE by the method introduced by Liu et al. (1998) and Yu et al.
(2003).
Trade distortions.
Various studies have estimated the magnitude of
agrcultural prce dstortons usng avalable seres on domestc and
international prices. Unfortunately, the results obtained have varied widely.
Huang et al. (2004) adopted a new approach, which estimated the policy
mpacts from detaled ntervews wth partcpants n Chna's agrcultural
marketng and tradng actvtes. Ths approach provdes a much clearer
ndcaton of the mplcatons of agrcultural trade polces than would
otherwse be possble. Ther results have been used n several recent
