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Article
Publication date: 5 February 2018

Xiaohua Yu

The purpose of this paper is to review the theoretical background, methodological extensions, and empirical applications of the Engel curve, which is applied to the…

Abstract

Purpose

The purpose of this paper is to review the theoretical background, methodological extensions, and empirical applications of the Engel curve, which is applied to the research of the change in farmers’ welfare and food demand in China after the economic reform in 1978, compared with the statistics of income and food consumption.

Design/methodology/approach

This paper mainly uses the traditional method of Engel curve, which is compared with income growth and food consumption, to study farmers’ welfare improvement in rural China.

Findings

The Engel coefficients identify three different stages for farmers’ welfare change after 1978. The first stage is the period between 1978 and 1988, in which farmers’ welfare has been continuously enhanced due to the institutional bonus of the 1978 economic reform and increased government purchase price of agricultural products. The second stage is the period between 1989 and 1995, in which farmers’ welfare has been slightly deteriorated mainly due to the end of institutional reform bonus, suppressed food prices, relative high inflation, and instable political situation. The third stage is the period after 1995, in which farmers’ welfare returns to a growing path, as the dual price system was abolished, the transition from a planned economy to a market economy had been completed, and the government carried out protective policies for agriculture and started to heavily subsidize agriculture. The Engel coefficient still remained at a very high level at 0.59 in 1995, but it continuously decreased to 0.33 in 2015. The welfare enhancement for farmers mainly results from deepened market-oriented reform, protective policies for agriculture, and prevalent off-farm employment. The Engel coefficient is also linked to food demand elasticities. Along with the decreasing Engel coefficient in the past 40 years, income elasticities also continuously decrease from 0.55 in 1978 to 0.08 in 2015. Food demand is very inelastic now, and any further increase in income will not substantially increase food demand any more.

Research limitations/implications

Inequality has not been analyzed.

Originality/value

This paper reviews the methodological advantages of the Engel curves, and uses it to identify different stages of welfare change and estimate income elasticities of food demand for farmers in China after the 1978 economic reform.

Details

China Agricultural Economic Review, vol. 10 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

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Article
Publication date: 18 December 2018

Eva Hasiner and Xiaohua Yu

In international trade differences in political and legal systems confront trading partners with relatively greater information asymmetry and contract enforcement problems…

Abstract

Purpose

In international trade differences in political and legal systems confront trading partners with relatively greater information asymmetry and contract enforcement problems than in domestic trade, resulting in higher transaction costs. Nevertheless, well-functioning institutions in the exporting country could prove beneficial for the agricultural importer, as institutions generally establish food and product regulations and ensure that they are enforced and serve as a last resort for dispute resolution and contract enforcement. Given China’s increasingly stricter control of its food supply chain and its rising imports of meat products, the purpose of this paper is to analyze whether institutions in the exporting country matter for Chinese meat imports.

Design/methodology/approach

To analyze the effect of the exporters’ institutions on Chinese meat imports, the authors estimate a gravity model for the 1990-2013 period. The authors apply the method suggested by Helpman et al. (2008) to correct for sample selection and firm heterogeneity. To estimate the effect of time-invariant variables, the authors apply the Fixed Effects Vector Decomposition method proposed by Plümper and Troeger (2007).

Findings

The results show that institutions affect Chinese trade flows. In particular, the authors find that China imports more meat products from countries who host qualitatively better institutions and are geographically closer, and that the country’s imports rise with its GDP level. This confirms our hypothesis that institutions in the exporting country are positively associated with meat exports to China.

Originality/value

The importance of the exporters’ institutions for Chinese meat imports has not been studied so far and is of great interest given China’s rising role as a sizable importer. Furthermore, Chinese meat imports have attracted much attention recently due to the country’s potentially significant impact on world food security and sustainable development. Hence, this paper aims to make a substantial contribution to the literature, both from a scientific and a policy perspective.

Details

International Journal of Emerging Markets, vol. 14 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

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Article
Publication date: 22 September 2020

Yan Zhang, Shaosheng Jin, Yu Yvette Zhang and Xiaohua Yu

The purpose of this study is to decompose the effects of country-of-origin labeling (COOL) into multiple dimensions—macrolevel image, related to the country image, and…

Abstract

Purpose

The purpose of this study is to decompose the effects of country-of-origin labeling (COOL) into multiple dimensions—macrolevel image, related to the country image, and microlevel image, related to dairy industry/product attributes—and investigate how each dimension affects Chinese consumers' evaluation of imported milk.

Design/methodology/approach

This study adopted the Becker–DeGroot–Marschak (BDM) auction mechanism to elicit consumers' willingness to pay (WTP) for milk from different countries (New Zealand, Australia, Germany, France and China). The experiment was conducted with 348 shoppers at supermarkets in three major cities of China (Hangzhou, Wuhan and Shijiazhuang). The study subject was ultrahigh-temperature processing (UHT) milk (200 mL Tetra Pak aseptic brick package).

Findings

The results show that Chinese consumers are willing to pay a premium for UHT milk from New Zealand, Australia, Germany and France compared to domestic milk, and the premiums are 59.4, 58.9, 57.9, and 52.9% respectively. Both microlevel and macrolevel images exert a substantial influence on consumers' WTP, and the microlevel image has a greater impact on consumers' evaluation of milk than the macrolevel image. Particularly, the macropolitical, microtechnology/quality and microdesign/package dimensions have a positive influence on WTP for milk.

Originality/value

This study contributes to the existing literature in introducing the country-of-origin image (COI) construct with different dimensions to get in-depth knowledge about the country-of-origin (COO) effect in food or agricultural economics.

Details

China Agricultural Economic Review, vol. 13 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Content available
Article
Publication date: 25 June 2020

Xiaohua Yu, Chang Liu, Hanjie Wang and Jan-Henning Feil

The purpose of this paper is to empirically study the impact of the coronavirus disease 2019 (COVID-19) on food prices in China and provides policy implications for crisis…

Abstract

Purpose

The purpose of this paper is to empirically study the impact of the coronavirus disease 2019 (COVID-19) on food prices in China and provides policy implications for crisis management for other countries who are still under the crisis of COVID-19 and for the future in China and beyond as well.

Design/methodology/approach

This paper first designed a theoretical model of market equilibrium, which shows that the impact of COVID-19 on food prices is linked to the impact difference on demand and supply in response to the COVID-19 crisis. Then we collected the representative prices data for four major food products (rice, wheat flour, pork and Chinese cabbages) from three provinces (Shandong as a producing base, Beijing as a consumption base and Hubei as the epicenter), and set up an iGARCH model.

Findings

(1) No significant impact on rice and wheat flour prices, (2) significantly positive impact on cabbages prices and (3) various impact on pork prices. Note that the outbreak and the severity of COVID-19 have different impacts. The outbreak itself may have a relatively large impact on pork and cabbage prices, which may result from social panic, while the magnitude of the impact of severity is relatively small, and some are negative, perhaps due to more reduced demand during the quarantine.

Practical implications

China always puts food security in its prior position of policy agenda and has been preparing for the worst scenario of the food security crisis. In the anti-COVID-19 campaign, China's local governments developed many measures to ensure food provision for each consumer. Hence, the impact of COVID-19 on food prices is minor. However, the outbreak of COVID-19 crisis could cause social panic in some scenarios where consumers may hoard food. Eventually, it may form a vicious cycle to push up food prices. This will be a challenging policy issue in crisis management for almost all governments.

Originality/value

This paper provides empirical evidence on the impact of COVID-19 on food prices in China. China has basically contained the COVID-19 in the whole country, and no major food crisis occurred during this process. The results will provide information on crisis management for other countries that are still under the COVID-19 crisis, and for future China and beyond.

Details

China Agricultural Economic Review, vol. 12 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

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Article
Publication date: 15 June 2021

Xiaoheng Zhang and Xiaohua Yu

Overuse of chemical fertilizers and pesticides is a major policy concern for many countries. Chinese government has adopted many technologies and management practices to…

Abstract

Purpose

Overuse of chemical fertilizers and pesticides is a major policy concern for many countries. Chinese government has adopted many technologies and management practices to reduce their use. However, little is known about the effects of social-economic method such as short supply chain (SSC) participation. SSC is an important organizational innovation in fresh food supply chains aiming at directly connecting farmers and consumers. Closer relationships between farmers and consumers may result in production behavioral changes. Thus the purpose of this paper is to investigate the impacts of SSC participation on agrochemicals application.

Design/methodology/approach

Based on the household level data collected from Jiangsu province in China, this paper employs an instrumental variable (IV) method to address the self-selection bias when we evaluate the effects of SSC participation on use of chemical fertilizer and pesticides. In addition, this paper also distinguishes between growth inputs and facilitating inputs in the production function when we calculate the marginal production values of chemical fertilizer and pesticides.

Findings

The empirical results show that SSC participation significantly reduces chemical fertilizer use by 351 kg and pesticides costs by 1659 Yuan (RMB) per hectare, accounting for 43.4% of the average chemical fertilizer use and 49.4% of the average pesticide costs, respectively for Chinese vegetable farms. However, SSC participation still cannot improve the use efficiency of agrochemicals.

Originality/value

This paper uses both application quantities and allocation efficiencies of chemical fertilizer and pesticides to comprehensively evaluate the effects of SSC participations. The results will reveal the core role of SSC played in promoting sustainable development of Chinese agricultural sector dominated by small-scale farmers.

Details

China Agricultural Economic Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-137X

Keywords

Content available
Article
Publication date: 27 August 2020

Dieter Koemle and Xiaohua Yu

This paper reviews the current literature on theoretical and methodological issues in discrete choice experiments, which have been widely used in non-market value…

Abstract

Purpose

This paper reviews the current literature on theoretical and methodological issues in discrete choice experiments, which have been widely used in non-market value analysis, such as elicitation of residents' attitudes toward recreation or biodiversity conservation of forests.

Design/methodology/approach

We review the literature, and attribute the possible biases in choice experiments to theoretical and empirical aspects. Particularly, we introduce regret minimization as an alternative to random utility theory and sheds light on incentive compatibility, status quo, attributes non-attendance, cognitive load, experimental design, survey methods, estimation strategies and other issues.

Findings

The practitioners should pay attention to many issues when carrying out choice experiments in order to avoid possible biases. Many alternatives in theoretical foundations, experimental designs, estimation strategies and even explanations should be taken into account in practice in order to obtain robust results.

Originality/value

The paper summarizes the recent developments in methodological and empirical issues of choice experiments and points out the pitfalls and future directions both theoretically and empirically.

Details

Forestry Economics Review, vol. 2 no. 1
Type: Research Article
ISSN: 2631-3030

Keywords

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Article
Publication date: 16 December 2019

Xu Tian, Fujin Yi and Xiaohua Yu

The purpose of this paper is to investigate Chinese farmers’ adaptation behavior in the context of the rising cost of labor in agriculture. As the cost of labor increases…

Abstract

Purpose

The purpose of this paper is to investigate Chinese farmers’ adaptation behavior in the context of the rising cost of labor in agriculture. As the cost of labor increases, farmers will either reallocate their budget to different inputs or change the structure of agricultural production to maximize profit.

Design/methodology/approach

The Rural Fixed Point Observation data set between 2004 and 2010 is employed in the empirical analysis of this study. Both the compensated and uncompensated demand elasticities with respect to wages are estimated by adopting the translog cost function and the profit function.

Findings

The results show that labor input will drop down significantly as a response to rising wages. Land, fertilizer and intermediate inputs are net complements of labor, whereas machinery appears to be net substitute for labor. In addition, the authors also separate the expansion effect from the substitution effect and find that farmers will shift to grain production with intensive use of fertilizer and from wheat and corn to rice as a response to the rising cost of labor.

Originality/value

This study adopts the classical household model to incorporate various adaptation behaviors of farmers into one framework and decomposes the total effect of the rising cost of labor on input demand into an expansion effect and a substitution effect, which provides a better understanding of farmers’ adaptation behavior.

Details

China Agricultural Economic Review, vol. 12 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Content available
Article
Publication date: 19 September 2017

Susanne Schwan and Xiaohua Yu

This paper aims to discuss the roles of social protection in reducing and facilitating climate-induced migration. Social protection gained attention in the international…

Abstract

Purpose

This paper aims to discuss the roles of social protection in reducing and facilitating climate-induced migration. Social protection gained attention in the international climate negotiations with the establishment of the Warsaw International Mechanism for Loss and Damage. Yet, its potential to address migration, considered as a key issue in the loss and damage debate, has not been sufficiently explored. This paper aims at identifying key characteristics of social protection schemes which could effectively address climate-induced migration and attempts to derive recommendations for policy design.

Design/methodology/approach

Based on the existing literature, the paper links empirical evidence on the effects of social protection to climate-related drivers of migration and the needs of vulnerable populations. This approach allows conceptually identifying characteristics of effective social protection policies.

Findings

Findings indicate that social protection can be part of a proactive approach to managing climate-induced migration both in rural and urban areas. In particular, public work programmes offer solutions to different migration outcomes, from no to permanent migration. Benefits are achieved when programmes explicitly integrate climate change impacts into their design. Social protection can provide temporary support to facilitate migration, in situ adaptation or integration and adaptation in destination areas. It is no substitution for but can help trigger sustainable adaptation solutions.

Originality/value

The paper helps close research gaps regarding the potential roles and channels of social protection for addressing and facilitating climate-induced migration and providing public support in destination, mostly in urban areas.

Details

International Journal of Climate Change Strategies and Management, vol. 10 no. 1
Type: Research Article
ISSN: 1756-8692

Keywords

Abstract

This paper tests the pollution haven hypothesis by examining the relationship between environmental regulation and foreign investment with consideration of the role of corporate social responsibility, which has so far been neglected. Using multinationals’ investment data from China, our results in general support the pollution haven hypothesis that less stringent environmental regulation is more attractive for multinationals to invest in China, but high social responsibility can counteract attractiveness of weak environmental regulation.

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Article
Publication date: 2 February 2015

De Zhou, Xiaohua Yu and Thomas Herzfeld

The purpose of this paper is to investigate dynamic food demand in urban China, with use of a complete dynamic demand system – dynamic linear expenditure system-linear…

Abstract

Purpose

The purpose of this paper is to investigate dynamic food demand in urban China, with use of a complete dynamic demand system – dynamic linear expenditure system-linear approximate dynamic almost ideal demand system (DLES-LA/DAIDS), which pushes forward the techniques of demand analysis.

Design/methodology/approach

The authors employ a transitionary demand process and develop a new approach of complete demand system with a two-stage dynamic budgeting: a strongly separable DLES in the first stage and a LA/DAIDS in the second stage. Employing provincial aggregate data (1995-2010) from the China urban household surveys, The authors estimated the demand elasticities for primary food products in urban China.

Findings

The results indicate that most primary food products are necessities and price inelastic for urban households in China. The authors also found that the dynamic model tends to yield relatively smaller expenditure elasticities in magnitude than the static models do due to the friction effect of dynamic adjusting costs, such as habit formation, switching costs, and learning process. However, the dynamic effects on own price elasticities are inconclusive due to the add-up restriction.

Practical implications

The research contributes to the demand analysis methodologically, and can be used for better projections in policy simulation models.

Originality/value

This paper methodologically relaxes the restrictive assumption of instant adjustment in static models and allows consumers to make a dynamic decision in food consumption. Empirically, the authors introduce a new complete dynamic demand model and carry out a case study with the use of urban household data in China.

Details

China Agricultural Economic Review, vol. 7 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

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