Rice, wheat, and corn supply response in China

This study analyses the indica rice, winter wheat, and corn production response to prices, rainfall, temperatures, and other parameters for the agriculturally most important provinces in China. System and difference GMM estimators are used as the number of groups is large compared to the time periods and the production response is a dynamic process. We find that all crops strongly respond to prices around planting time and shortly after while prices further away from the time of planting turn out insignificant. Furthermore, rainfall affects the production positively and high temperatures negatively for all crops. The results for other variables differ between the crops. Mixed outcomes are found for irrigation, fertilizer prices, area affected by droughts and interaction terms. Results suggest that irrigation is only partly able to compensate for impacts of weather variability. The presented method for analyzing the price response at different points in time may also be used for general model specification tests.

Issue Date:
May 28 2015
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
PURL Identifier:
Total Pages:
JEL Codes:
O13; Q11; Q13; Q18
Series Statement:
Paper #6875

 Record created 2017-04-01, last modified 2019-08-30

Download fulltext

Rate this document:

Rate this document:
(Not yet reviewed)