| This paper presents a quantitative analysis of the Chinese wheat and rice industries. The specific purpose is to analyze government policies for wheat and rice, and their impacts on industry performance. Dynamic relationships among prices, quantities and total GNP are investigated with a vector autoregression using Chinese data. Government intervention in domestic commodity markets is quite common in China. The Chinese government is not only heavily involved in production, but also in marketing and distribution of most commodities, especially agricultural products. Production planning and collection rationing are used to reduce the need for food imports. Grain price policy is used as an economic tool to promote the government's objectives of... |
