The content of trade factors in Chinese agricultural products
(2.Hubei Rural Development Research Center)
【Abstract】The HOV model shows that trade among products is essentially a trade among factors. When a country participates in free trade, it becomes a net exporter of factors of which it has an abundance and a net importer of factors that are rare in the country. This article uses the factor content of trade approach to calculate the factor content, including land, labor, and capital of major Chinese agricultural products between 1992 and 2013 and organize these three factors into a single analytical framework. The article also studies China’s relative factor endowments based on Leamer improvement. The calculations indicate that the net total labor factor export is decreasing. The trade content of land factor is a net import, and the capital factor which is a net import is increasing. Meanwhile, the data shows that China has a comparative advantage in agricultural labor, but not in land or capital. Trade of agricultural products in different qualities have different influences on the production factors.
【Keywords】 HOV model; factor content ; Leamer improvement; trade in agricultural products; HOV Model; Factor Content; Improvement Model of the Leam er; Trade in Agricultural Products;
. ①The theory expansion based on the HOV Model by Leamer is called “Leamer improvement.” Leamer suggests that the proper method to deduce the relative abundance of factors is to utilize factor content (including factor content of trade and direct factor mobility) under the condition of unbalanced trade. Now that the mobility of agricultural production factors is insufficient, this method is applicable to this article as well. The Leamer improvement is applied to the latter section of this article, which aims to measure the relative abundance and comparative advantage of China’s agricultural factors. [^Back]
. ②The Major agricultural products include labor-intensive and land-intensive agricultural products. [^Back]
. ③The factor content of agricultural trade in this article refers to the trade volume of all factors contained in agricultural trade, and the reference (Liu, 2011) adopts the saying of trade content of one factor to represent the trade volume of one factor, and the trade content is comprised of the net import and net export of factors. [^Back]
Cheng, G. & Zhu, M. Reform (改革), (1) (2014).
Chang, L. & Hu, A. Economics of Finance and Trade (财贸经济), (1) (2011).
Liu, Y. Economic Review (经济评论), (2) (2011).
Liu, P. & Zhan, J. Journal of University of South China (JCR Social Science Edition) (南华大学学报(社会科学版)), (2) (2013).
Liu, Y. Economics (Quarterly)(经济学(季刊)), (2) (2004).
Lin, D., Zhu, J. & Wu, G. Soybean Science (大豆科学), (2) (2014).
Journal of International Trade (国际贸易问题), (3) (2014).
Ma, B. & Zhang, B. Journal of Northwest Sci-Tech University of Agriculture and Forestry (Natural Science Edition) (西北农林科技大学学报 (自然科学版)), (6) (2010).
Qiang, W., Liu, A. & Cheng, S. et al. Journal of Natural Resources (自然资源学报), (8) (2013).
Tan Z. Journal of China Youth College for Political Sciences (中国青年政治学院学报), (4) (2013).
Wang, Y., Feng, R. & Guo, T. Journal of Agricultural Technology Economics (农业技术经济), (4) (2015).
Xue R. & Su Q. Journal of Zhongnan University of Economics and Law (中南财经政法大学学报), (2) (2014).
Zhu J., Zhang, S. & Cao L. China Population Resources and Environment (中国人口资源与环境), (6) (2012).
Zhang, Y. & Zheng, L. Xinjiang State Farms Economy (新疆农垦经济), (12) (2009).
Bowen, H., Leamer, E. and Sveikauskas, L.,(1987) “Multicountry, Multifactor Tests of the Fact or Abun-dance Theory,” American Economic Review 5, 791–809.
Jian ping, Ding, (2002) “What Obscures the Skill Content Embodied in China’s Net Export?” Economics of Planning 35, 333–348.
Leamer, E. E, and Levinsohn, J., (1994) “International Trade Theory: The Evidence,” Working Papers 3, 1339-1394.
Leamer, E. E., (1980) “The Leontief Paradox Reconsidered,” Journal of Political Economy 3,495-503.
Maskus, K. E., Sveikauskas, C. D. and Webster, A., (1994) “The Composition of the Human Capital Stock and Its Relation to International Trade: Evidence from the US and Britain,” Weltwirtschaftliches Archive 1, 50–76.
Trefler, D., (1993) “International Factor Price Differences: Leontief Was Right!” Journal of Political Economy 6, 961-987.
Trefler, D., (1995) “The Case of the Missing Trade and Other Mysteries,” American Economic Review 5, 1029-1046.
Vanek, J., (1968) “The Factor Proportions Theory: The N-Fact or Case,” Kyklos 21, 749-754.