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Abstract
This study attempts to identify and
measure quantitatively the effects of changing economic
environment and trade policies on China’s agricultural
imports from the EU as well as globally. The approach is
to model behavioural relationships in the agricultural
trade between China and the EU by using annual trade
data from 1986 to 2005. The results indicate that
Chinese agricultural imports are relatively inelastic to
absolute price changes, but relative price changes
significantly affect the market shares of EU exports due
to price competition. Trade liberalisation in the form of
tariff reductions is trivial in changing the quantity of
China’s agricultural imports from the EU. China’s
growing agrifood imports has been fuelled by rapid
income growth of its population.