Analysis Of Comparative Advantage Of China's Agricultural Products In Japan Agriculture Market

Agriculture is indispensable to a country, which has positive effectiveness on other industries. Every country in the world emphasizes its own agriculture development very much. Agricultural trade had ever played a very import role in our international trade, but the role has been changed since the development of other industries. Meanwhile, our agriculture trade development has showed a characteristic-"big export with big import". We even have got agricultural trade deficit since 2004 to today. Especially with the new situation-being a WTO member, so it is necessary for us to rethink our agricultural comparative advantage and competitiveness.Japan had ever been the biggest agriculture production importer, which has been the second biggest agriculture products importer since 2001, and USA has taken place the biggest agriculture products importer at the same time. Japan still is the biggest agriculture products buyer in Asia area and the most important agriculture products export destination for us.In this paper I will analyze the different comparative advantage of agricultural products among China, Japan and USA by using history performance comparativeness. Several indexes such as revealed comparative advantage (RCA), trade specialization coefficient (TSC), relative trade advantage (RTA), and Overall Bilateral Complement (OBC), will show the agricultural products trade performance of those three countries. After analyzing those indexes we find that the labor-intensive agricultural product is our advantage. Meat, fish and seafood preparations, fruit and vegetables and cereal preparations are the products which show our comparative advantage completely. Although we have a disadvantage in the land-intensive product, we can develop agriculture manufacture industry to twist the disadvantage into advantage-the increasing of competitiveness of cereal preparation is a good example of it. I also use econometrics method to prove some Japan domestic factors will influence our agriculture trade performance in Japan. I use import model try to find out whether joining WTO encourages agriculture import and makes the agricultural trade deficit in recently years or not in our country. "Big export with big import" will be a long time trend of our agricultural trade and the trade deficit will last a long period is one of the conclusions of this paper. Lastly, I also get some policy suggestions aimed to improve the competitiveness of our agricultural product and show its comparative advantage completely.