Virtual Land and Water Flows and Driving Factors Related to Livestock Products Trade in China

Abstract

Agricultural trade, which involves the exchange of virtual water and land resources, can effectively regulate the allocation of resources among countries while enhancing the well-being of resource-rich and resource-poor nations. China’s animal products trade market concentration is greater, and the livestock industry consumes more water than other agricultural sectors. In order to alleviate the pressure on China’s domestic water and land resources and to ensure that Chinese residents have access to animal products, this article examines the trade situation and drivers of virtual water and land resources related to Chinese animal products trade. This study used the heat equivalent method to measure the virtual water and land flows of the import and export of beef, pork, and mutton from 1992 to 2018, which is followed by the gravity model to investigate the factors impacting China’s flow of virtual land and water related to livestock products trade. We found that the economic development and the agricultural resources of exporters, as well as China’s agricultural employment rates, have a stable beneficial impact on China’s livestock imports. The population of importing nations, China’s cultivated land area, and the livestock production index of importers and exporters have a positive impact on the export of livestock products from China. Our results remain robust following a series of additional tests.