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Analysis of China’s Agricultural I-O structure from 1997 to 2002

Analysis of China’s Agricultural I-O structure from 1997 to 2002. Wu, Lingyan (CAAS) Li, zhongmin (CASS) Oct. 23, 2007. Outline. Background of Chinese Agriculture: Some Economic Indexes Views from Input Aspects Views from Output Aspects Conclusions.

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Analysis of China’s Agricultural I-O structure from 1997 to 2002

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  1. Analysis of China’s Agricultural I-O structure from 1997 to 2002 Wu, Lingyan (CAAS) Li, zhongmin (CASS) Oct. 23, 2007

  2. Outline • Background of Chinese Agriculture: Some Economic Indexes • Views from Input Aspects • Views from Output Aspects • Conclusions

  3. Background of Chinese Agriculture: Some Economic Indexes

  4. Table 1 Agriculture economic condition in general Sources: All the data came from the author’s calculation based on the Input-Output table of China in 1997 and 2002.

  5. Some findings • The agricultural technical service is the only sector which VAR is increasing. However, the average profit margin of agriculture had increased sharply. • Labor cost is the most important part of added value, indicating that agriculture still belongs to the labor-intensive industry. • The technology of agriculture is behind other industries which also happened in agriculture’s mechanization and value-added ratio.

  6. Views of Input Aspect • Fertilizer is still a most important input. The importance of fertilizer increases over the years although the marginal benefits decline. • This was also true for pesticides and other factors. The cumulative input coefficient of fertilizer and pesticide in 2002 had decreased by 16% and 39% respectively. • It is surprising that the coefficient for agricultural machinery was as low as 2.3%.

  7. Table 2 Cumulative input coefficients between Agriculture and input industry

  8. Table3 Change orientation of cumulative input coefficients between Agriculture and Input Industry Note: ↑↑↑or↓↓↓ indicates the change ratio over 50%, ↑↑or↓↓ indicates the change ratio in 25<R<50%, ↑or↓ indicates the change ratio is R<25%.

  9. Agricultural production utility is decreasing, and most factors’ margin is dropping, too. • Plastic is more effective with Agriculture, because of the extended usage in Plant, such as vegetable and fruit. • Forestry is different from others. Its coefficient values are only lower than Plant, but appear direct rise.

  10. Views of Output Aspect • From the output aspect, agriculture is a basic industry and is highly correlated with 9 industries, especially Sawmills, Furniture and Food Products. The cumulative input coefficients are still very high. But the 2002 data clearly showed that the correlations are decreasing. • On one hand, the benefits to agricultural decreased - it added quantity but not value. On the other hand, intensities of processing inputs have increased thus the marginal benefit at the product has increased.

  11. Table 4 Output industry list

  12. Table 5 Cumulative Input Coefficient between Agriculture and Output Industry

  13. Table 6 Change Orientation of Cumulative Input Coefficients between Agriculture and Output Industry Note: ↑↑↑or↓↓↓ indicates the change ratio over 50%, ↑↑or↓↓ indicates the change ratio in 25<R<50%, ↑or↓ indicates the change ratio is R<25%.

  14. About the change orientation of cumulative input coefficients between Agriculture and Output Industry, the decrease outweighs than the increase. • The industry of Sugar, Wines, spirits and liquors and Tobacco products are decreased significant, they have changed very much on techniques since 1997. • But the Slaughtering and meat processing and Fish Industry have little changes. It seems that these two industries still have chance to make great progress in the future.

  15. Conclusions • Firstly, agriculture’s contribution to national economy has decreased. Though the Agriculture output is still grow, the value change little. The way to develop Agriculture is extending the other output industries’ use. • Secondly, farmer still prefer add the use of fertilizer and pesticide, machines’ use is not popular in China Agriculture. Data shows the marginal output of the former two factors are decreased, machines maybe one way of Agriculture’s development. • Thirdly, Agriculture is the basis of other industry, but its development is still limited by that of other output industry. Development of Agriculture will depend on that of other output industry.

  16. Thank you!

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