New Zealand Journal of Agricultural Research abstracts
Analysing levels of China’s agricultural domestic support with an
optimising model
Lingxian Zhang1
Daoliang Li1
Weisong Mu1
Jun Yue1,2
Zetian Fu1,*
1College of Information & Electrical Engineering
China Agricultural University
PO Box 209
17 Qinghua Donglu
Haidian District, Beijing, 100083 China
2College of Management
Ludong University
Yantai, 264006 China
*Author for correspondence: fzt@cau.edu.cn
Abstract The paper analyses the impacts of
alteration of
agricultural domestic supports on state welfare adopting partial
equilibrium theory. In order to find out the appropriate levels of
agricultural domestic supports in China, a nonlinear programming
approach was utilised, based on constraints of the annual financial
budget and the Uruguay Round Agreement on Agriculture, to build an
optimisation model for levels of China agricultural domestic support
was built to aim at the maximum welfare. The result shows that the
maximum levels of China “amber box” support are 50 billion dollars from
welfare maximisation in the international agricultural product trade.
The amber box support is about 174 billion RMB yuan according to the de
minimis levels of China with 8.5%. The national annual budgetary
expenditure for agriculture was 175.445 billion RMB yuan approximately
in 2003, the amber box support of which was only 55.143 billion RMB
yuan.
Keywords agricultural domestic support;
China; optimisation
model; partial equilibrium; welfare; WTO
A07074; Online publication date 17 December 2007; Received and
accepted 10 August 2007
New Zealand Journal of Agricultural Research, 2007, Vol. 50:
647–654
0028–8233/07/5005–0647 © The Royal Society of New Zealand 2007
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