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A Comparative Study On The Dual-Margin And Its Driving Factors Between China-America And China-India Agriculture Trade

Posted on:2014-01-11Degree:MasterType:Thesis
Country:ChinaCandidate:X ZhengFull Text:PDF
GTID:2269330428961356Subject:International Trade
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China is a large agricultural country in the world, agricultural trade plays a very important role in its foreign trade. Since China officially joined the WTO in2001, its agricultural trade has been in a rapid expansion. However, behind the trade prosperity it also encounters some structural problems, resulting in China’s agricultural trade has been in a deficit situation in recent years, and is vulnerable to external shocks. Thus, the research of dual-margin on agricultural trade growth is of great theoretical significance and reality for the realization of sustainable growth in China’agricultural products. In view of the United States, India, respectively, is China’s important agricultural trade partners in developed countries and developing countries, this paper conducts an empirical measure and comparison on the basis of the new new international trade theory and drawing lessons from Melitz (2003) heterogeneity enterprise trade model. And further it empirically analyzes the driving factors and the differences on agricultural trade dual-margin of China-America, China-India through the econometric model, and puts forward some relevant policy suggestions.The paper is divided into six parts to start the research. The introduction reviews the related literature about trade growth mode under the dual-margin perspective. It states the definition of the dual-margin, the degree of contribution to the trade growth and influencing factors.The second chapter presents the theory foundation and survival mechanism for the dual-margin of trade growth. Paper in the third chapter analyzes the China’s overall growth situation of agricultural trade, as well as the agricultural trade present situation and development trend to the United States and India. The fourth chapter analyzes empirically the growth of agricultural trade in China-America and China-India in the perspective of products level, using the heterogeneous enterprise trade mode of the new new trade theory and the United Nations Trade Database HS6sub-bit encoded data. This article learns the research methods of the dual-margin from Hummels and Klenow (2005), to decompose the growth of agricultural trade into the intensive growth and extensive growth. And the intensive growth is further divided into price increases and volume increases. The fifth chapter analyzes the driving factors of imported dual-margin using the metering methods, the main fators are the size of the target market, export enterprise productivity levels, multilateral trade resistance, and bilateral trade costs and so on. According to the above analysis, the sixth paper summarizes the research conclusions and puts forward the suggestions to promote the growth of China’s agricultural trade.The results showed that:the growth of agricultural trade between China and America mainly comes from the contributions of quantity, followed by the contributions of expansion margin, and the prices contributed to a limited extent. While the growth of agricultural trade between China and India mainly comes from the contributions of expansion margin, the contribution of price and quantity is negative. There are some specific policy recommendations:Strengthen agricultural product safety and quality supervision, expand the export quantity of agricultural products, which can realize the agricultural export growth from the intensive margin. Improve the added value of agricultural which can drive the growth of the agricultural product export trade from the aspects of price promotion and extension margin. Implement the diversification strategy from the trade of agricultural products and trade market, which can disperse the impact of external shocks from the perspective of extensive margin, thus to promote the steady growth of China’s agricultural trade.
Keywords/Search Tags:agricultural trade, intensive margin, extensive margin
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