The trade and welfare effects of state trading in China with reference to COFCO
The use of state trading to manage imports and exports has been a long-standing feature of China’s agricultural trade regime. While the use of state trading was modified by China’s accession to the WTO, state trading still dominates for some commodities, even though there have been recent attempts to diminish its importance. In this paper, we analyse the potential trade distorting effect of COFCO on market access and export competition by drawing on some recent research on the impact of STEs on agricultural trade. By using a calibrated model of China’s imports of wheat and exports of maize, we are able to quantify the size of the trade distortions.
Contributed Paper prepared for presentation at the International Association of Agricultural Economists Conference, Beijing, China, August 16-22, 2009. Final version published by Blackwell in The World Economy; available online at http://onlinelibrary.wiley.com/
Vol. 33, Issue 4, pp. 615 - 632
Place of publication