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Research on the Phenomenon That the Increase of Grain Production Did Not Cause the Harvest Paradox in China from 2003 to 2014

Received: 8 November 2018    Accepted: 30 November 2018    Published: 20 December 2018
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Abstract

The phenomenon that China's increase of grain production didn’t cause the Harvest Paradox from 2003 to 2014 occurred in the context of significant increase in domestic residents’ income and food demand, as well as loosening price and the market of grain purchase and sales. Research on the phenomenon not only enhances the understanding of the condition and mechanism for the Harvest Paradox, but also maybe offers some little reference values in solving food problems of China. Following the methods of Samuelson and Nordhaus, this paper utilizes the supply and demand theorem to study the phenomenon. The phenomenon was found it didn’t cause the loss of farmers' total income that the grain production in China had increased for 11 years from 2003 to 2014, which was inconsistent with the Harvest Paradox in economics. It resulted from non-grain price factors which caused the demand line moved in excess of the supply line. Thus the grain price rose. Grain supply policies taken by Chinese government such as the four subsidies were conducive to the Harvest Paradox. To ensure that farmers’ income increase, the demand line should get sharper move towards the upper right via the power of market or government policies.

Published in International Journal of Business and Economics Research (Volume 7, Issue 6)
DOI 10.11648/j.ijber.20180706.16
Page(s) 218-226
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Chinese Grain Production, Demand Line’s Movement, Occurrence Condition of Harvest Paradox, Supply and Demand Theorem

References
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[4] Zhu Mande. Comparison of the Function and Effect of Agricultural Product Price Support and Direct Subsidy Policy——An Empirical Review [J]. Journal of Guizhou University (Social Science Edition), 2014 (2): 29-34.
[5] Zhan Lin, Jiang Heping. The Deadlock and Breakthrough of Promoting the Grain Target Price System Reform in china [J]. Issues in Agricultural Economy, 2015 (2): 14-20.
[6] Lu Wencong et al. Regional Equilibrium of Chinese Grain Supply and Demand under Globalization: Implications for National Grain Security [J]. Issues in Agricultural Economy, 2011 (4): 16-28.
[7] Liao Xiyuan, Li Fengbo, Xu Chunchun, Shen Hongfang, Fang Fuping. National Strategy for Grain Security [J]. Issues in Agricultural Economy, 2011 (4): 9-15.
[8] Hu Feng. Does the Government Raise the Minimum Purchase Price to Drive Up Grain Prices? [J]. China Grain Economy, 2011 (3): 32-33.
[9] Paul Samuelson, William Nordhaus: Microeconomics [M]. Beijing: People's Posts and Telecommunications Press in China, Chinese translation, 2012: 67.
[10] Lu Feng, Xie Ya. The Supply of an the Demand for Grains in China, and the Trend of Prices (1998-2007) [J]. Management World, 2008 (3): 70-80.
[11] Gregory Mankun. Principles of Economics (Microeconomics Volume) [M]. Beijing: Peking University Press, Chinese translation, 2012: 109.
[12] Zhao Shoujun, Wang Zhiqiang, Zhang Zhanyong, Li Fulin. 2011. The Understanding of " cheap of cereal Injury Farmers" from the Perspective of Public Management——Taking the Unsalable Potato in Inner Mongolia as an Example [J]. Journal of Inner Mongolia University of Finance and Economics, 2011 (6): 73-77.
[13] Jiang Xusheng. To Analyse and Countermeasure on "Cheap Grain Hurts the Farmers"[J]. Value Engineering, 2009 (11): 27-29.
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[16] Zhou Jian. Discussion on the Solution of "Gu Yu and Injuring Farmers" from the Perspective of Demand Elasticity [J]. Agriculture Outlook, 2007 (12): 3-5.
[17] Sun Xiaosu. Countermeasures to Inexpensive Paddy Damaging Peasants and Difficultly Increasing Peasant’s Income [J]. Journal of Lanzhou Commercial College, 2006 (4): 106-108.
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  • APA Style

    Xu Jianlong, Zhang Xinyue. (2018). Research on the Phenomenon That the Increase of Grain Production Did Not Cause the Harvest Paradox in China from 2003 to 2014. International Journal of Business and Economics Research, 7(6), 218-226. https://doi.org/10.11648/j.ijber.20180706.16

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    ACS Style

    Xu Jianlong; Zhang Xinyue. Research on the Phenomenon That the Increase of Grain Production Did Not Cause the Harvest Paradox in China from 2003 to 2014. Int. J. Bus. Econ. Res. 2018, 7(6), 218-226. doi: 10.11648/j.ijber.20180706.16

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    AMA Style

    Xu Jianlong, Zhang Xinyue. Research on the Phenomenon That the Increase of Grain Production Did Not Cause the Harvest Paradox in China from 2003 to 2014. Int J Bus Econ Res. 2018;7(6):218-226. doi: 10.11648/j.ijber.20180706.16

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  • @article{10.11648/j.ijber.20180706.16,
      author = {Xu Jianlong and Zhang Xinyue},
      title = {Research on the Phenomenon That the Increase of Grain Production Did Not Cause the Harvest Paradox in China from 2003 to 2014},
      journal = {International Journal of Business and Economics Research},
      volume = {7},
      number = {6},
      pages = {218-226},
      doi = {10.11648/j.ijber.20180706.16},
      url = {https://doi.org/10.11648/j.ijber.20180706.16},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20180706.16},
      abstract = {The phenomenon that China's increase of grain production didn’t cause the Harvest Paradox from 2003 to 2014 occurred in the context of significant increase in domestic residents’ income and food demand, as well as loosening price and the market of grain purchase and sales. Research on the phenomenon not only enhances the understanding of the condition and mechanism for the Harvest Paradox, but also maybe offers some little reference values in solving food problems of China. Following the methods of Samuelson and Nordhaus, this paper utilizes the supply and demand theorem to study the phenomenon. The phenomenon was found it didn’t cause the loss of farmers' total income that the grain production in China had increased for 11 years from 2003 to 2014, which was inconsistent with the Harvest Paradox in economics. It resulted from non-grain price factors which caused the demand line moved in excess of the supply line. Thus the grain price rose. Grain supply policies taken by Chinese government such as the four subsidies were conducive to the Harvest Paradox. To ensure that farmers’ income increase, the demand line should get sharper move towards the upper right via the power of market or government policies.},
     year = {2018}
    }
    

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    AU  - Xu Jianlong
    AU  - Zhang Xinyue
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    DO  - 10.11648/j.ijber.20180706.16
    T2  - International Journal of Business and Economics Research
    JF  - International Journal of Business and Economics Research
    JO  - International Journal of Business and Economics Research
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    PB  - Science Publishing Group
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    AB  - The phenomenon that China's increase of grain production didn’t cause the Harvest Paradox from 2003 to 2014 occurred in the context of significant increase in domestic residents’ income and food demand, as well as loosening price and the market of grain purchase and sales. Research on the phenomenon not only enhances the understanding of the condition and mechanism for the Harvest Paradox, but also maybe offers some little reference values in solving food problems of China. Following the methods of Samuelson and Nordhaus, this paper utilizes the supply and demand theorem to study the phenomenon. The phenomenon was found it didn’t cause the loss of farmers' total income that the grain production in China had increased for 11 years from 2003 to 2014, which was inconsistent with the Harvest Paradox in economics. It resulted from non-grain price factors which caused the demand line moved in excess of the supply line. Thus the grain price rose. Grain supply policies taken by Chinese government such as the four subsidies were conducive to the Harvest Paradox. To ensure that farmers’ income increase, the demand line should get sharper move towards the upper right via the power of market or government policies.
    VL  - 7
    IS  - 6
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Author Information
  • College of Economics, Qinghai Nationalities University, Xining, China

  • College of Economics, Qinghai Nationalities University, Xining, China

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