Abstract
As the third-largest crop in China, wheat production plays an essential role in China's agricultural production, food processing and consumption structure. Besides, China is the world’s largest wheat producer and consumer, where it produces 14.83% of the world's total wheat production in 2017. So it is necessary to analyze and evaluate the government policy for wheat production in China using PAM. This research depends on the data has issued by the National Development and Reform Commission/China statistics press 2018 (National farm production cost-benefit survey 2017). The outcomes of this paper showed that the coefficients measures confirm there is government support for wheat production, that indicates, farmers are getting prices higher than global prices by the continuation of the current policy. While there was no comparable advantage has shown for Chinese wheat product in social prices due to the government intervention in the prices of production outputs. Where this policy representation indexes show that the policy for wheat production 2017 supported the farmers on the consumer cost.
Highlights
As the third-largest crop in China, wheat plays an essential role in China’s agricultural production, food processing and food consumption structure
The results show that the average domestic resource cost (DRC) of wheat is 1, which is mean; it is just at the ideal balance of interests, but from the DRC values of each year shows that most of the years, the wheat production does not have an advantage and should be adjusted
The policy analysis matrix defined as a mathematical framework that helps divide the commodity system into its essential components, namely, private profitability estimated at special prices( prices in the local market), social profitability calculated at social prices, and the difference between the two measures of profitability
Summary
As the third-largest crop in China, wheat plays an essential role in China’s agricultural production, food processing and food consumption structure. The existing researches have carried out various studies on China's agricultural trade and international competitiveness and have achieved fruitful results. Xiujuan and Yanhing (2015), and Wang Yijie et al (2018) analyzed the international competitiveness of China’s wheat production by using three indicators: global market share, trade competition index and comparative advantage index, and found that compared with the world’s major wheat exporters, China’s wheat Industrial competitiveness has apparent disadvantages. That China’s labor-intensive agricultural products have substantial comparative advantages; land-intensive agricultural products have lost comparative advantages (Jikun & Hengyun, 2000; Chuanmin, Guoqiang, & Jinlong, 2003)
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