Measuring the Effects of a Sliding Scale Duty System on China's Cotton Market: A Spatial Equilibrium Approach

Xuejun Wang, Koshi Maeda, Satoshi Hokazono, Nobuhiro Suzuki, Harry M. Kaiser

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

We examined the impacts of China's implementation of a sliding scale duty (SSD) system on the world cotton market. The analysis was based on a spatial equilibrium model of major importing and exporting regions that incorporates key features of China's SSD. The model solutions suggest that implementation of the SSD system improved market access for imports of cotton in China, which benefitted cotton processors, and adversely affected China's cotton producers. The Chinese market price of cotton decreased, imports increased, and domestic production declined. Furthermore, subsequent adjustments of the SSD system increased market access for cotton, which benefitted China cotton processors. These changes in China's cotton trade policy altered conditions in the world.

Original languageEnglish
Pages (from-to)345-365
Number of pages21
JournalAgribusiness
Volume30
Issue number3
DOIs
Publication statusPublished - Jan 1 2014

All Science Journal Classification (ASJC) codes

  • Food Science
  • Geography, Planning and Development
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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