Impact of Market Integration on China's Food Security

Abstract

This study explores the potential gain in improving food security at lower costs resulted from an integrated grain market. It reveals that there is potentially a big difference in policy costs between an integrated grain market and segmented grain markets. The segmented grain markets will require much higher extra policy costs to ensure food security. On the contrary, an intergrated grain market could reduce policy costs substantially, and therefore, could enhance food security through policy formation and implementation and may even help to raise the level of food security. The study infers that the integration of China's domestic grain markets into the world grain markets would further reduce the policy costs and increase China's food security. Show more