The Research Of The Home Market Effects On Agricultural Products Export In China

China is one of largest agricultural products produce and trade all around the world.As the total volume of agricultural trade increases year by year,the deficit of China's agricultural products trade is becoming larger and larger.With the disappearance of demographic dividend and over development of land,comparative advantageof C hina's agricultural products export are weakening,C hina must find a new source of comparative advantage.The home market effects(HME)proposed by Krugman in the frame of new trade theory believes a country have excess demand of a product will eventually lead to the country becoming a net export of that product.Does HME exist in China's agricultural products export? Is there any difference between the HME in different agricultural products.This paper will answer these questions through theoretical and empirical analysis.Firstly,this paper introduces the preconditions of HME,and makes theoretical analysis the possibility of HME with theoretical model.And than,this paper presents production and trade of C hina's agricultural products.Finally,this paper draws and extends the gravity model,it includes relative demand scale,relative factor endowments and relative demand structure,examines the existence of HME using static panel model without relative demand structure in the model,and examines the existence of HME within relative demand structure.Theoretical analysis prove the possibility of the existence of HME,and economies of scale,monopolistic competition and product differentiation,transport costs are quite related to HME.Empirical analysis show that the HME doesn't exists in holistic C hina 's agricultural products export,while there is reverse HME in holistic China's agricultural products export;non edible animal product,forest and paper product,aquatic product,vegetable and horticulture product show significant HME on demand scale;but agricultural commodities,drink and tobacco product show significant reverse HME;demand structure do not increase agricultural products export but increase agricultural products import,forest and paper product,non edible animal product,vegetable and horticulture product have reverse HME on demand structure.At the same time,traditional endowment effects of C hina's agricultural products export are weakening,C hinese people have a great demand of agricultural products,the Chinese Government should think highly of HME,change the current agricultural policies and the situation of decentralized production,build agticultural products' brand with regional characteristics,optimize export structure of agricultral products.