Driving factors of virtual water in international grain trade: A study for belt and road countries

Xia, Wenjun; Chen, Xiaohong; Song, Chunhui; Pérez-Carrera, Alejo

doi:10.1016/j.agwat.2021.107441

Cited by 30 publications

(15 citation statements)

References 50 publications

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“…The results of this study show that the unreasonable industrial structure in the Yellow River Basin has led to the transfer of local water resources, and the agricultural sector is the largest water-resource import and export sector ( Figure 3 ), which is consistent with the conclusions of relevant studies [ 96 , 97 ]. On the one hand, agriculture is a high water-consumption industry [ 98 ], which consumes a lot of blue and green water resources in the process of crop evapotranspiration [ 99 ]. Secondly, the Yellow River Basin is an important grain production base in China.…”

Section: Discussionmentioning

confidence: 99%

Virtual Water Flow Pattern in the Yellow River Basin, China: An Analysis Based on a Multiregional Input–Output Model

Liu

Xiong

Guo³

et al. 2022

IJERPH

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Research on the Yellow River Basin’s virtual water is not only beneficial for rational water resource regulation and allocation, but it is also a crucial means of relieving the pressures of a shortage of water resources. The water stress index and pull coefficient have been introduced to calculate the implied virtual water from intraregional and interregional trade in the Yellow River Basin on the basis of a multi-regional input–output model; a systematic study of virtual water flow has been conducted. The analysis illustrated that: (1) Agriculture is the leading sector in terms of virtual water input and output among all provinces in the Yellow River Basin, which explains the high usage. Therefore, it is important to note that the agricultural sector needs to improve its water efficiency. In addition to agriculture, virtual water is mainly exported through supply companies in the upper reaches; the middle reaches mainly output services and the transportation industry, and the lower reaches mainly output to the manufacturing industry. Significant differences exist in the pull coefficients of the same sectors in different provinces (regions). The average pull coefficients of the manufacturing, mining, and construction industries are large, so it is necessary to formulate stricter water use policies. (2) The whole basin is in a state of virtual net water input, that is, throughout the region. The Henan, Shandong, Shanxi, Shaanxi, and Qinghai Provinces, which are relatively short of water, import virtual water to relieve local water pressures. However, in the Gansu Province and the Ningxia Autonomous Region, where water resources are not abundant, continuous virtual water output will exacerbate the local resource shortage. (3) The Yellow River Basin’s virtual water resources have obvious geographical distribution characteristics. The cross-provincial trade volume in the downstream area is high; the virtual water trade volume in the upstream area is low, as it is in the midstream and downstream areas; the trade relationship is insufficient. The Henan and Shandong Provinces are located in the dominant flow direction of Yellow River Basin’s virtual water, while Gansu and Inner Mongolia are at the major water sources. Trade exchanges between the midstream and downstream and the upstream should be strengthened. Therefore, the utilization of water resources should be planned nationwide to reduce water pressures, and policymakers should improve the performance of agricultural water use within the Yellow River Basin and change the main trade industries according to the resource advantages and water resources situation of each of them.

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Section: Discussionmentioning

confidence: 99%

Virtual Water Flow Pattern in the Yellow River Basin, China: An Analysis Based on a Multiregional Input–Output Model

Liu

Xiong

Guo³

et al. 2022

IJERPH

View full text Add to dashboard Cite

show abstract

“…Therefore, the structure of trade in agricultural products should be modified based on the characteristics of the virtual water flow. The authors of [7] note that for countries that do not have stable economic development and, at the same time, have a shortage of water, the export of crops with high water consumption should be under control. At the same time, the study does not take into account the consequences of the impact of virtual water shortage risks on the global food crisis.…”

Section: Literature Review and Problem Statementmentioning

confidence: 99%

“…Also, according to the results of research [7], the regression model, which is built on the example of China's grain trade data, shows that GDP is positively correlated with the virtual flow of water. At the same time, water resources, arable land, geographical remoteness of the land resource were negative factors that prevented the virtual import of water.…”

Section: Literature Review and Problem Statementmentioning

confidence: 99%

Determining the impact of virtual water scarcity risk on the global food crisis 2022 as a result of hostilities

Fedulova

Zadoia

Shkura

et al. 2023

EEJET

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The object of this study is the process that forms conceptual foundations for managing the impact of virtual water deficiency risks on the global food crisis. The main idea of the study focuses on determining the consequences of the global food crisis in the world under the influence of a significant reduction in virtual water exports from Ukraine to agri-food markets. It is determined that most likely, in the context of the replacement of Ukrainian exports of grain and agricultural products as a result of Russian aggression in Ukraine, the countries of the world will resort to new ways of obtaining effective imports of virtual water from other countries. The study proved that rapid structural changes in the economies of the countries of the world and the reorientation of their national economies towards the development of the agricultural sector under modern conditions of global uncertainty would inevitably lead to certain consequences. Namely, either to the fall in the growth rate of national economies, or to the state of the "bifurcation explosion" with the subsequent dispersion of possible states of development. The proposed scientific and methodological approach to assessing the sustainability of the systemic development of the territory over time for water-intensive regions makes it possible to take calculated decisions at the national level regarding the scale and prospects for the development of economic activities in the state. The described theoretical and methodological foundations of the interdependence of water and food security and the developed fundamental provisions of the economies of countries under the conditions of the global food crisis and the risk of a shortage of virtual water will create the following opportunities. Specifically, they enable state authorities to assess the depth of the specified crisis in the world and its consequences for all countries in 2022–2023. Such an understanding creates the conditions for making effective decisions on the volume of import of virtual water in a particular country

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“…Specifically, infrastructure connectivity (IC) between two countries can considerably facilitate BT and transportation [8] and enhance the BT volume [9][10][11]. Trade facilitation through IC considerably reduces the trade cycle [12,13], trade costs [14][15][16][17][18] and uncertainty [13,16,[19][20][21][22]. Accordingly, BT can be promoted, thus facilitating the timely exchange of relevant market information between the two countries [23] and products of comparative advantage and by accelerating cross-border flow and the adjustment of factors and commodities [22].…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Can policy coordination facilitate unimpeded trade? An empirical study on factors influencing smooth trade along the Belt and Road

2022

Applied Mathematics and Nonlinear Sciences

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There are 94 countries and regions along the Belt and Road (CRBR). China proposed the Belt and Road Initiative (BRI) in 2013, and it encompasses five core elements: unimpeded trade (UT), policy coordination (PC), infrastructure connectivity (IC), financial integration (FI) and people-to-people bond (PPB). The BRI has facilitated international relations and multilateral trade, in addition to building a community with a shared future for mankind. However, factors such as political relations and cultural distance have affected bilateral trade (BT) between China and CRBR. Further analysis is required to explore the association between UT and policy, infrastructure, financial and people-to-people connectivity. A multiple linear regression analysis using SPSS 20 revealed that: (1) IC, FI, PPB and improved economic levels can promote BT to varying degrees, but spatial distance inhibits the development of BT; and (2) the coordination between policy subjects does not promote UT up to any significant level. Accordingly, strengthening infrastructure and FI, promoting people-to-people and bilateral exchanges, and opening extra China–Europe freight trains and maritime transport will enhance UT, expand BT and invigorate the global economy.

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Driving factors of virtual water in international grain trade: A study for belt and road countries

Cited by 30 publications

References 50 publications

Virtual Water Flow Pattern in the Yellow River Basin, China: An Analysis Based on a Multiregional Input–Output Model

Virtual Water Flow Pattern in the Yellow River Basin, China: An Analysis Based on a Multiregional Input–Output Model

Determining the impact of virtual water scarcity risk on the global food crisis 2022 as a result of hostilities

Can policy coordination facilitate unimpeded trade? An empirical study on factors influencing smooth trade along the Belt and Road

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