Quantitative Analysis Of Chinese Agricultural Policy Effect In Recent Years

Policy changes can shift resource allocation and then influence agriculture system. Decision-makers, as well as economists and researchers are concerned about policy cost and its efficiency, since it involved with scarce resource.Remarkable changes have taken place in China's agricultural policy in recent years. Both domestic policies and frontier policies adjusted in many aspects, especially after China entered WTO in 2002. How these changes have an impact on agriculture system, what is the policy efficiency, to what the extent China's policies protect its agriculture and what's the difference between products? Research on these problems has theoretic significance and crucial sense to efficient policy system.In this report, a well-known quantitative approach——Policy Analysis Matrix is introduced to analysis different policy impact on products protection, competitive ability before and after China became one of WTO members, taking corn(including japonica rice, maize and wheat), oilseed(including soybean, rapeseed and peanut) and cotton as examples.The research draws conclusions as follows: the first one is policy changes have increased products competitive ability in a whole after 2002. The second one is policy protects those products lack of comparative advantage or low advantage level (such as maize and soybean) better than those products with high advantage level(as peanut and cotton). The conclusion indicates China's policy puts emphasis on non-economy object (food security) than economy object and thus policies exist loss of efficiency. Furthermore, the study on agricultural input policies draws a conclusion that input costs in production are higher than their real costs or opportunity costs and China's policy protecting inputs is very lack. Finally, advices to improve policy in agriculture development are given.