Impact On Agricultural Products Foreign Trade To Income Disparity Of Rural Households In China

Since Heckscher and Ohlin who are economists of Sweden think the differenceof factors of production is the reason of international trade base on comparativeadvantage theory which was put forward by Ricardo, the issue that internationaltrade cause return change of factors of production and then influence incomedistribute was paid more attention to by scholars. China is the fourth country ininternational trade of agricultural products, the relationship between agriculturalproducts foreign trade and income disparity of rural households in China is worthyto research, this paper researches the impact on agricultural products foreign trade toincome disparity of rural households in China from the perspective of regionaldifferences.The theory and demonstration research of this paper is base on the analysis ofRegion partition, the internal pattern of agricultural products foreign trade andincome disparity of rural households in China. This paper defines the concept ofregion and introduces the existing state of Region partition, and then dividesChinese mainland into nine regions according to the studying purpose and content ofthis paper, the time of agriculture opening-up and production conditions inagriculture. On this basis, this paper analyses the internal pattern of agriculturalproducts foreign trade and income disparity of rural households in China. Throughresearches status quo of agricultural products foreign trade, the internal pattern andregion discrepancy of agricultural products foreign trade in China, concludes thatduring2002-2010, the scale of agricultural products foreign trade of China isceaseless enlarge, but agricultural products foreign trade of China isn’tdisproportion，the Beijing Delta, Yangtze River Delta and Pearl River Delta are themain region, the absolute and relative discrepancy of agricultural products foreigntrade is enlarge mildly, discrepancy between region is bigger than that of internalregion. This paper also analyses the per capita net income disparity and the percapita net income of family-run operation disparity of rural households in China andeach region during2002-2010, used the index of Weighted standard deviation, theiland astringency, and concludes that absolute income disparity in China and eachregion is enlarge, and income disparity exists conditionallyβastringency, that meansincome disparity between region will continue. Theoretically, base on the analysis of existing researches，the mechanism ofagricultural products foreign trade influence income disparity of rural households inChina is concluded, which is factor Prices mechanism, agricultural productscompetitiveness change mechanism and structure of agricultural productionalteration mechanism. This paper thinks that agricultural products of labor intensivehave comparative advantage, but agricultural products of land intensive haven’tcomparative advantage in China, just because of the resource of agriculture. SoChina export agricultural products of labor intensive and import agriculturalproducts of land intensive, which will improve the price of labor, reduce the price ofland, and then influence income distribution of rural households in China, that ischannel agricultural products foreign trade influence income disparity of ruralhouseholds in China by actor Prices mechanism. On this basis, this paper also thinksour main import and export agricultural products will be confronted withcompetition of home market and international market because of agriculturalproducts foreign trade, with the ability of competition of agricultural products ineach region changes, every region will adjust the structure of agriculture production,then will influence income distribution of rural households in China. And because ofthe change of the resource of agriculture, factor Prices mechanism, agriculturalproducts competitiveness change mechanism, every region will adjust the structureof agriculture production, which will influence income distribution of ruralhouseholds in China, it is structure of agricultural production alteration mechanism.Empirically，this paper analyses the impact of agricultural products foreigntrade to income disparity of rural households in China used panel date and timeserial date from follow aspects, one is analyses the impact of foreign trade、exportand import of agricultural products to income disparity of rural households(including the average annual per-capita net income gap and the per capitafamily-run operation net income gap for rural residents) in China used region datefrom the whole Chinese mainland angle. Another is analyses the impact of eachregion foreign trade、export and import of agricultural products to income disparityof rural households of each region based on region date. Three is analyses therelationship between disproportion of agricultural products foreign trade and incomedisparity of rural households used date of between region and internal region. Everyanalysis is base on the next three angles: unit root test，cointegration test and theestimation of cointegration, At the same time，some variables that can impact incomedisparity are controlled，such as GDP, technic and investment of agriculture, etc.according to empirical analysis，there are three conclusions:First, foreign trade and import of agricultural products could reduce averageannual per capita net income disparity of rural households, but could broaden per capita household operations net income disparity of rural households since2002.theimpact of export of agricultural products to income disparity of rural householdsisn’t notable.Second, the impact of agricultural products foreign trade to income disparity ofrural households in China is notable only in developed region of agriculturalproducts foreign trade (including Beijing Delta, Yangtze River Delta and Pearl RiverDelta), and the impact of agricultural products foreign trade to the average annualper-capita net income disparity is bigger than the per capita family-run operation netincome disparity, but the impact are different in these regions.Finally，the disproportion of agricultural products foreign trade in differentregions could reduce income disparity of rural households.According to the conclusion of theoretical and empirical research, this paperputs forward some suggestion for different region to reduce income disparity of ruralhouseholds from agricultural products foreign trade angle, it thinks that the regionsof Beijing Delta, Yangtze River Delta and Pearl River Delta should enhance theability of competition of the tradition advantage agricultural products and importedcompetitive agricultural products by innovating the agricultural management system,and enlarge export of the technology-intensive and capital-intensive agriculturalproducts. Dongbei region should develop the grain industry that is dominantagricultural product in Dongbei, and green and organic grain industry is better fit toDongbei region. Other regions should enlarge export of agricultural products whichhave trade competitiveness and relative trade advantage, and break down the greentrade barriers of agricultural products.