TRADE, TECHNOLOGY SPILLOVERS, AND FOOD-PRODUCTION IN CHINA

This paper studies technology spillovers between China and other count ries, international trade in inputs being the prime carrier of knowled ge in agricultural production. Human capital characteristics and struc tural characteristics of the agricultural production systems determine the local usability of foreign knowledge for Chinese farmers. The aut hors utilize a multi-region applied general equilibrium model to analy ze Chinese opportunities to benefit from foreign technology improvemen ts in grain production. It is shown that possible;negative welfare eff ects of unilateral trade liberalization of China against North America n imports of agricultural inputs may be more than compensated by produ ctivity gains if technology spillovers are included. JEL no. F47, O30, Q16