Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China

Most studies of the opening of the Chinese economy focus at the national level. The few existing disaggregated analyses are limited to analyzing changes in agricultural production. The authors use an innovative village equilibrium model that accounts for nonseparability of household production and c...

Full description

Bibliographic Details
Main Authors:	Kuiper, Marijke, van Tongeren, Frank
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURE BANKING SECTOR BENCHMARK CAPITAL FLOWS COMPARATIVE ADVANTAGE CONCEPTUAL FRAMEWORK CONSUMPTION LEVELS CONSUMPTION PATTERNS ECONOMIC GROWTH ECONOMICS RESEARCH EMPIRICAL ANALYSIS EMPLOYMENT EQUILIBRIUM EQUILIBRIUM MODELS EQUIVALENT VARIATION EXPENDITURES FEMALES FISH FIXED PRICES FOOD PRODUCTION GDP GENDER GENERAL EQUILIBRIUM MODEL GOVERNMENT INTERVENTION GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME EFFECTS INCOME INEQUALITY INHERITANCE INPUT USE INSURANCE INTEREST RATES INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS MARGINAL VALUE MARKET EQUILIBRIUM MARKET FAILURES MARKET INTEGRATION MIGRATION PRICE CHANGES PRICE INCENTIVES PRICE INCREASES PRICE INDEX PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PATTERNS PURCHASE PRICE RENTING RURAL AREAS SALES SHADOW PRICES STATE ENTERPRISES SUBSTITUTION SUBSTITUTION ELASTICITIES SUPPLIERS SUPPLY CURVE SUPPLY FUNCTIONS SURPLUS TRADE LIBERALIZATION TRADE REFORMS TRANSACTION COSTS TRANSACTIONS COSTS URBAN AREAS URBAN GROWTH VALUE ADDED VILLAGES WAGES WELFARE GAINS WTO
Online Access:	http://documents.worldbank.org/curated/en/2005/09/6252170/growing-together-or-growing-apart-village-level-study-impact-doha-round-rural-china http://hdl.handle.net/10986/8595

id	okr-10986-8595
recordtype	oai_dc
spelling	okr-10986-85952021-04-23T14:02:43Z Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China Kuiper, Marijke van Tongeren, Frank ACCOUNTING AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURE BANKING SECTOR BENCHMARK CAPITAL FLOWS COMPARATIVE ADVANTAGE CONCEPTUAL FRAMEWORK CONSUMPTION LEVELS CONSUMPTION PATTERNS ECONOMIC GROWTH ECONOMICS RESEARCH EMPIRICAL ANALYSIS EMPLOYMENT EQUILIBRIUM EQUILIBRIUM MODELS EQUIVALENT VARIATION EXPENDITURES FEMALES FISH FIXED PRICES FOOD PRODUCTION GDP GENDER GENERAL EQUILIBRIUM MODEL GOVERNMENT INTERVENTION GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME EFFECTS INCOME INEQUALITY INHERITANCE INPUT USE INSURANCE INTEREST RATES INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS MARGINAL VALUE MARKET EQUILIBRIUM MARKET FAILURES MARKET INTEGRATION MIGRATION PRICE CHANGES PRICE INCENTIVES PRICE INCREASES PRICE INDEX PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PATTERNS PURCHASE PRICE RENTING RURAL AREAS SALES SHADOW PRICES STATE ENTERPRISES SUBSTITUTION SUBSTITUTION ELASTICITIES SUPPLIERS SUPPLY CURVE SUPPLY FUNCTIONS SURPLUS TRADE LIBERALIZATION TRADE REFORMS TRANSACTION COSTS TRANSACTIONS COSTS URBAN AREAS URBAN GROWTH VALUE ADDED VILLAGES WAGES WELFARE GAINS WTO Most studies of the opening of the Chinese economy focus at the national level. The few existing disaggregated analyses are limited to analyzing changes in agricultural production. The authors use an innovative village equilibrium model that accounts for nonseparability of household production and consumption decisions. This allows them to analyze the impact of trade liberalization on household production, consumption, and off-farm employment, as well as the interactions among these three aspects of household decisions. They use the village model to analyze the impact of price changes and labor demand, the two major pathways through which international trade affects households. Analyzing the impact of trade liberalization for one village in the Jiangxi province of China, the authors find changes in relative prices and outside village employment to have opposite impacts on household decisions. At the household level the impact of price changes dominates the employment impacts. Comparing full trade liberalization and the more limited Doha scenario, reactions are more modest in the latter case for most households, but the response is nonlinear to increasing depth of trade reforms. This is explained by household-specific transaction (shadow) prices in combination with endogenous choices to participate in the output markets. Rising income inequalities are a growing concern in China. Whether trade liberalization allows incomes to grow together or to grow apart depends on whether one accounts for the reduction in consumption demand when household members migrate. Assessing the net effect on the within-village income distribution, the authors find that poorer households that own draught power gain most from trade liberalization. The households that have to rely on the use of own labor for farm activities and are not endowed with traction power, nor with a link to employment opportunities in the prospering coastal regions, have fewer opportunities for adjustment. 2012-06-20T21:27:09Z 2012-06-20T21:27:09Z 2005-09 http://documents.worldbank.org/curated/en/2005/09/6252170/growing-together-or-growing-apart-village-level-study-impact-doha-round-rural-china http://hdl.handle.net/10986/8595 English Policy Research Working Paper; No. 3696 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTING AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURE BANKING SECTOR BENCHMARK CAPITAL FLOWS COMPARATIVE ADVANTAGE CONCEPTUAL FRAMEWORK CONSUMPTION LEVELS CONSUMPTION PATTERNS ECONOMIC GROWTH ECONOMICS RESEARCH EMPIRICAL ANALYSIS EMPLOYMENT EQUILIBRIUM EQUILIBRIUM MODELS EQUIVALENT VARIATION EXPENDITURES FEMALES FISH FIXED PRICES FOOD PRODUCTION GDP GENDER GENERAL EQUILIBRIUM MODEL GOVERNMENT INTERVENTION GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME EFFECTS INCOME INEQUALITY INHERITANCE INPUT USE INSURANCE INTEREST RATES INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS MARGINAL VALUE MARKET EQUILIBRIUM MARKET FAILURES MARKET INTEGRATION MIGRATION PRICE CHANGES PRICE INCENTIVES PRICE INCREASES PRICE INDEX PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PATTERNS PURCHASE PRICE RENTING RURAL AREAS SALES SHADOW PRICES STATE ENTERPRISES SUBSTITUTION SUBSTITUTION ELASTICITIES SUPPLIERS SUPPLY CURVE SUPPLY FUNCTIONS SURPLUS TRADE LIBERALIZATION TRADE REFORMS TRANSACTION COSTS TRANSACTIONS COSTS URBAN AREAS URBAN GROWTH VALUE ADDED VILLAGES WAGES WELFARE GAINS WTO
spellingShingle	ACCOUNTING AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURE BANKING SECTOR BENCHMARK CAPITAL FLOWS COMPARATIVE ADVANTAGE CONCEPTUAL FRAMEWORK CONSUMPTION LEVELS CONSUMPTION PATTERNS ECONOMIC GROWTH ECONOMICS RESEARCH EMPIRICAL ANALYSIS EMPLOYMENT EQUILIBRIUM EQUILIBRIUM MODELS EQUIVALENT VARIATION EXPENDITURES FEMALES FISH FIXED PRICES FOOD PRODUCTION GDP GENDER GENERAL EQUILIBRIUM MODEL GOVERNMENT INTERVENTION GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME EFFECTS INCOME INEQUALITY INHERITANCE INPUT USE INSURANCE INTEREST RATES INTERMEDIATE INPUTS INTERNATIONAL TRADE LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS MARGINAL VALUE MARKET EQUILIBRIUM MARKET FAILURES MARKET INTEGRATION MIGRATION PRICE CHANGES PRICE INCENTIVES PRICE INCREASES PRICE INDEX PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PATTERNS PURCHASE PRICE RENTING RURAL AREAS SALES SHADOW PRICES STATE ENTERPRISES SUBSTITUTION SUBSTITUTION ELASTICITIES SUPPLIERS SUPPLY CURVE SUPPLY FUNCTIONS SURPLUS TRADE LIBERALIZATION TRADE REFORMS TRANSACTION COSTS TRANSACTIONS COSTS URBAN AREAS URBAN GROWTH VALUE ADDED VILLAGES WAGES WELFARE GAINS WTO Kuiper, Marijke van Tongeren, Frank Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper; No. 3696
description	Most studies of the opening of the Chinese economy focus at the national level. The few existing disaggregated analyses are limited to analyzing changes in agricultural production. The authors use an innovative village equilibrium model that accounts for nonseparability of household production and consumption decisions. This allows them to analyze the impact of trade liberalization on household production, consumption, and off-farm employment, as well as the interactions among these three aspects of household decisions. They use the village model to analyze the impact of price changes and labor demand, the two major pathways through which international trade affects households. Analyzing the impact of trade liberalization for one village in the Jiangxi province of China, the authors find changes in relative prices and outside village employment to have opposite impacts on household decisions. At the household level the impact of price changes dominates the employment impacts. Comparing full trade liberalization and the more limited Doha scenario, reactions are more modest in the latter case for most households, but the response is nonlinear to increasing depth of trade reforms. This is explained by household-specific transaction (shadow) prices in combination with endogenous choices to participate in the output markets. Rising income inequalities are a growing concern in China. Whether trade liberalization allows incomes to grow together or to grow apart depends on whether one accounts for the reduction in consumption demand when household members migrate. Assessing the net effect on the within-village income distribution, the authors find that poorer households that own draught power gain most from trade liberalization. The households that have to rely on the use of own labor for farm activities and are not endowed with traction power, nor with a link to employment opportunities in the prospering coastal regions, have fewer opportunities for adjustment.
format	Publications & Research :: Policy Research Working Paper
author	Kuiper, Marijke van Tongeren, Frank
author_facet	Kuiper, Marijke van Tongeren, Frank
author_sort	Kuiper, Marijke
title	Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China
title_short	Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China
title_full	Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China
title_fullStr	Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China
title_full_unstemmed	Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China
title_sort	growing together or growing apart? a village level study of the impact of the doha round on rural china
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/09/6252170/growing-together-or-growing-apart-village-level-study-impact-doha-round-rural-china http://hdl.handle.net/10986/8595
_version_	1764407687083196416

Growing Together or Growing Apart? A Village Level Study of the Impact of the Doha Round on Rural China

Similar Items