Impacts of agricultural public spending on Chinese food economy

Shiwei Xu (Agricultural Information Institute, Chinese Academy of Agricultural Sciences and Key Laboratory of Digital Agricultural Early‐warning Technology, Ministry of Agriculture, Beijing, People's Republic of China)
Yumei Zhang (Agricultural Information Institute, Chinese Academy of Agricultural Sciences and Key Laboratory of Digital Agricultural Early‐warning Technology, Ministry of Agriculture, Beijing, People's Republic of China)
Xinshen Diao (International Food Policy Research Institute, Washington, DC, USA)
Kevin Z. Chen (International Food Policy Research Institute, Washington, DC, USA)

China Agricultural Economic Review

ISSN: 1756-137X

Publication date: 22 November 2011

Abstract

Purpose

The purpose of this paper is to develop a dynamic computable general equilibrium (DCGE) model to analyze economy‐wide impacts of different types of public spending in China. A particular focus is placed on their impacts on food economy.

Design/methodology/approach

In this paper, DCGE model is developed to analyze economy‐wide impacts of different types of public spending in China. The effects of increased agricultural subsidies, agricultural R&D, and irrigation are simulated by using China DCGE model.

Findings

The results show that public spending has significant impact on food production, price, and trade. The increased public spending on agricultural R&D, irrigation, and agricultural subsidy also has modest impacts on other sectors such as industry, service, and GDP growth.

Originality/value

The paper constructs the China dynamic CGE model and analyzes economy‐wide impacts of different types of public spending in China, especially for the food economy.

Keywords

Citation

Xu, S., Zhang, Y., Diao, X. and Chen, K. (2011), "Impacts of agricultural public spending on Chinese food economy", China Agricultural Economic Review, Vol. 3 No. 4, pp. 518-534. https://doi.org/10.1108/17561371111192365

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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