An Alternative Approach to Measure Regional Comparative Advantage in China's Grain Sector

Abstract

This study uses Domestic Resource Costs (DRC) as the bases in measuring regional comparative advantage in grain production in China. It reveals that China as a whole is likely to have strong comparative advantage in Japonica rice, sorghum, middle Indica rice, millet, and late Indica rice production. However, at the regional and provincial level the comparative advantage in production of major grain crops varies significantly across China. This result implies that there exists great potential to improve resource allocation and to increase grain production through restructuring of the grain sector.