How China’s WTO accession affects rural economy in the less-developed regions
This study constructs a regional CGE model of China to analyze the differential regional impacts of China’s WTO accession on agricultural production, trade, and farmers’ income. The results show that China’s WTO accession will generally improve the total welfare but will widen existing gaps among regions and sectors. It is expected that the agricultural sector will suffer if only agricultural trade is liberalized, as cheap imports of agricultural products, particularly grains, will increase and domestic agricultural production and farmers’ agricultural income will decline.