Work

Market Emergence and Transition: Arbitrage, Transaction Costs, and Autarky in China's Grain Markets

Year: 2002

Type: article

Abstract: Using trimonthly Chinese provincial grain prices from 1988 to 1995, we estimate a parity‐bounds model of interregional trade for four subperiods to characterize how multiple aspects of market performance change during the process of economic transition. For each period, we estimate the extent to which arbitrage opportunities are realized by traders, the transaction costs between location pairs, and the likelihood that regions do not trade. Trade restrictions cannot explain the pattern of uneven market development over time. Infrastructure bottlenecks, managerial incentive reforms, and production specialization policies, all were likely important factors affecting market performance.

Source: American Journal of Agricultural Economics

DOI: 10.1111/1467-8276.00243

Authors: Albert Park, Hehui Jin, Scott Rozelle, Jikun Huang

Institutions: Chinese Academy of Sciences, University of Michigan, Institute of Geographic Sciences and Natural Resources Research, Stanford University, University of California, Davis

Language: English

Topic: Economics of Agriculture and Food Markets

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W2135638400

FWCI: 17.86

Cites: 41

Cited by: 171

Related to: 10