Long-Run Impacts of China's WTO Accession on Farm-Nonfarm Income Inequality and Rural Poverty

Long-Run Impacts of China's WTO Accession on Farm-Nonfarm Income Inequality and Rural Poverty

Many fear China's accession to the World Trade Organization (WTO) will impoverish its rural people by way of greater import competition in its agricultural markets. Anderson, Huang, and Ianchovichina explore that possibility bearing in mind th...

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Bibliographic Details
Main Authors:	Anderson, Kym, Huang, Jikun, Ianchovichina, Elena
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCESSION PROCESS ACCESSION PROTOCOL ADEQUATE SAFETY NETS ADJUSTMENT ASSISTANCE AGRICULTURAL COMMODITIES AGRICULTURAL GOODS AGRICULTURAL INCOMES AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTS AGRICULTURAL PROTECTION AGRICULTURAL RETURNS AGRICULTURAL SECTOR AGRICULTURAL TRADE AGRICULTURE ANIMAL ANIMAL FEEDS BARLEY BILATERAL TRADE BIOTECHNOLOGY CAPACITY BUILDING CAPITA INCOMES CAPITAL GAIN CLOTHING TRADE COARSE GRAINS COLLECTIVE FARMS COMMODITY COMPARATIVE ADVANTAGE COMPLEMENTARY POLICIES CONSTANT RETURNS TO SCALE CONSUMER PRICE INDEX CONSUMER PRICES CONSUMERS CONSUMPTION PATTERNS COTTON CROP DISPUTE SETTLEMENT DOMESTIC CONSUMPTION DOMESTIC DEMAND DOMESTIC SUPPORT DOWNWARD PRESSURE DUTY EXEMPTIONS ECONOMIC ANALYSIS ECONOMIC CIRCUMSTANCES ECONOMIC EFFECTS ECONOMIC GROWTH ECONOMIC POLICY REFORM ECONOMIC WELFARE EDIBLE OILS ELASTICITY EMPIRICAL ANALYSIS EMPLOYMENT EQUILIBRIUM EXCHANGE RATE EXPLOITATION EXPORT SUBSIDIES EXPORTS FACTOR MARKETS FARM FARM ACTIVITIES FARM EARNINGS FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOMES FARM LAND FARM LEVEL FARM PRODUCTIVITY FARM PRODUCTS FARM SECTOR FARM WORK FARM WORKERS FARMER FARMER INCOMES FARMERS FARMING FARMS FEED FINANCIAL MARKETS FINANCIAL SYSTEM FISH FISH PRODUCTS FOOD PRODUCTION FOOD PRODUCTS FOOD SECURITY FOODGRAINS FOREIGN INVESTMENT FRUITS FULL EMPLOYMENT GDP GENERAL EQUILIBRIUM MODEL GLOBAL ECONOMY GLOBAL TRADE GLOBAL TRADE ANALYSIS GRAIN HORTICULTURE HUMAN CAPITAL IMPORTS INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME INEQUALITY INDIVIDUAL COUNTRIES INDUSTRIAL PRODUCTS INDUSTRIALIZATION INTENSIVE PRODUCTS INTERMEDIATE GOODS INTERMEDIATE INPUTS LABOR MARKET LABOR MARKET DISTORTIONS LABOR MARKETS LABOR-INTENSIVE LIVESTOCK LIVESTOCK PRODUCTS MAIZE MARKET ACCESS MARKET DISTORTIONS MARKET PRICES MEAT METALS MILK MONOPOLIES NEGATIVE PROTECTION NET IMPORTS NON-AGRICULTURAL EMPLOYMENT NON-TARIFF MEASURES OIL OILSEEDS PER CAPITA INCOMES PERFECT COMPETITION POLICY CHANGE POLICY CHANGES POLICY MAKERS POOREST HOUSEHOLDS POPULATION GROWTH POVERTY ALLEVIATION POVERTY REDUCTION PRICE CHANGES PRODUCE PRODUCERS PRODUCT MARKETS PRODUCT PRICES PRODUCTIVITY PRODUCTIVITY GROWTH PROTECTIONISM QUOTAS RAPID INDUSTRIALIZATION REAL WAGES RICE ROUND AGREEMENT RURAL AREAS RURAL HOUSEHOLDS RURAL SECTOR RURAL-URBAN INCOME INEQUALITY SERVICE ACTIVITIES SERVICE SECTORS SOYBEAN STATE TRADING STRUCTURAL CHANGE SUGAR SUGAR CROPS TARIFF CUTS TARIFF RATE QUOTA TARIFF RATE QUOTAS TARIFF RATES TARIFF REDUCTIONS TAX REVENUE TAXATION TOBACCO TRADE BALANCE TRADE FLOWS TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORM TRADING PARTNERS UNEMPLOYMENT URBAN AREAS URBAN HOUSEHOLDS URUGUAY ROUND VEGETABLES VILLAGE ENTERPRISES WAGES WHEAT WOOL WORLD TRADE WTO WTO ACCESSION WTO COMMITMENTS WTO MEMBERS WTO MEMBERSHIP RURAL POVERTY ECONOMIC POLICY HOUSEHOLDS AGRICULTURAL IMPORTS GRAINS FINANCIAL SYSTEMS FRUIT TARIFFS CROPS WTO MEMBERSHIP RURAL POVERTY
Online Access:	http://documents.worldbank.org/curated/en/2003/05/2384815/long-run-impacts-chinas-wto-accession-farm-nonfarm-income-inequality-rural-poverty http://hdl.handle.net/10986/18214

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Summary:	Many fear China's accession to the World Trade Organization (WTO) will impoverish its rural people by way of greater import competition in its agricultural markets. Anderson, Huang, and Ianchovichina explore that possibility bearing in mind that, even if producer prices of some (land-intensive) farm products fall, prices of other (labor-intensive) farm products could rise. Also, the removal of restrictions on exports of textiles and clothing could boost town and village enterprises, so demand for unskilled labor for nonfarm work in rural areas may grow even if demand for farm labor in aggregate falls. New estimates, from the global economywide numerical simulation model known as GTAP, of the likely changes in agricultural and other product prices as a result of WTO accession are drawn on to examine empirically the factor reward implications of China's WTO accession. The results suggest farm-nonfarm and Western-Eastern income inequality may well rise in China but rural-urban income inequality need not. The authors conclude with some policy suggestions for alleviating any pockets of farm household poverty that may emerge as a result of WTO accession.

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