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 that, even if producer prices of some (land-intensive)...

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Bibliographic Details
Main Author: Ianchovichina, Elena
Other Authors: Huang, Jikun, Anderson, Kym
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2003
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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653 |a World Trade Organization 
653 |a Farm Products 
653 |a Macroeconomics and Economic Growth 
653 |a Income 
653 |a Farm Sector 
653 |a International Economics & Trade 
653 |a Crops and Crop Management Systems 
653 |a Agricultural Policy 
653 |a Farm Work 
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653 |a Social Protections and Labor 
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653 |a Rural Poverty Reduction 
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653 |a Food Insecurity 
653 |a Food and Beverage Industry 
653 |a Farmers 
653 |a Livestock and Animal Husbandry 
653 |a Economic Theory and Research 
653 |a Farm Households 
653 |a Agriculture 
653 |a Income Inequality 
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520 |a 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. This paper—a product of the Economic Policy Division, Poverty Reduction and Economic Management Network—is part of a larger effort in the network to assess the impact of China's WTO accession