Author: M. HePublisher:
ISBN:
Category :
Languages : en
Pages : 40
Book Description
In China, the dairy market has expanded in recent years and it relies heavily on the imports from foreign countries. During the past decades, the Chinese dairy market kept opening, and the fast development of China’s dairy trade calls for a research analyzing the effect of trade liberalization on the dairy sector. In this research, we provide a quantitative assessment of the implications of liberalization of the international trade in dairy products between China and its trading partners using a spatial equilibrium model. The model is developed based on 2011 data from open databases. The following five questions are answered in this paper: (1) What is the current situation of China’s dairy sector and how does China’s dairy market develop? (2) What policies are relevant for dairy trade between China and its trade partners now and in the future? (3) How can dairy trade of China be modeled? (4) What data on demand, supply and trade are necessary and available to construct a spatial equilibrium model? (5) What are the effects of trade liberalization on the dairy sector in China? Three scenarios of different levels of trade liberalization are simulated and the simulation result proves the positive influence of trade liberalization on Chinese dairy sector from a welfare perspective. Based on the results, we come up with some policy recommendations. Throughout the thesis, chapter 1 provides a general description of the background and problem analysis. Chapter 2 describes the development of China’s dairy sector and relevant trade policies. A trade model has been developed in Chapter 3. Next, Chapter 4 focuses on the effects of trade liberalization using a graphical analysis. Chapter 5 details the scenarios and simulation results. Finally, Chapter 6 presents the conclusions, recommendations and discussion.
