Technology Implication of Agricultural Sectors in China: A CGE Analysis Based on CHINAGEM Model

Abstract

The primary goal of Chinese agricultural development is to guarantee national food security and the supply of major agricultural products. Hence, the improvement of agricultural technology plays a vital role in China for economic development. Technological change in agricultural sector results in higher future economic growth as well as food security, both in food consumption and availability. By constructing China’s agriculture general equilibrium model (CGE), this paper explains the impact of agricultural technology change. This paper constructs a dynamic CGE model based on CHINAGEM model for analyzing the technology increase in China Agricultural sector and then describes the construction of database and policy scenario. Model such as Computable General Equilibrium (CGE) model is used to conduct analysis of the economy-wide impacts of new agricultural technologies in China. In the general equilibrium model, some external variables are established; any part of structural changes caused by its exogenous variables can affect the entire system, resulting in general changes of goods, prices and quantity of factor. Simulation result of this paper indicates the agriculture sector output increases respectively; employment decreases; production cost decreases; and investment increases. Finally this paper describes the effects of the policy of technology changes by comparing policy scenario to baseline scenario and explains the impact of technology changes in China economy using CHINAGEM model.

Harmonious Development of Society and Science and Technology

“…Comparing the United States at the 1920 and 1990s, although the harvested cropland has declined and the labor force has decreased from 26 to 2.6 percent, the grain production per person has increased by about 12 percent [9] (when the global population growing). In China, the technologies used in the agricultural is later than the United States, but after 1949, China have a huge agricultural production developed, it not only provided enough food to the huge population, it also played important role in the national economic system [10].…”

Fake News During the COVID-19

“…[2] As with a building, if the foundation is not strong, the building will collapse. And once news reports lose authenticity, news on the work to adhere to the party, the people will be all in vain [16].…”

Optimization of network flows for rural extension of fruit and vegetable agricultural technologies

“…Literature [12] implemented a technology diffusion model based on public-private partnership, and the expectation of the results proved to be able to bring significant significance and impact on agricultural technology diffusion. Literature [13] constructed a CGE model for the Chinese Ministry of Agriculture, degree data and scenario descriptions, analyzed using CGE model modeling, and the results showed that the policy effects have significant implications for technological change and advancement.…”