The Policy Analysis Matrix (PAM): Comparative Advantage of China’s Wheat Crop Production 2017

As the third-largest crop in China, wheat production plays an essential role in China's agricultural production, food processing and consumption structure. Besides, China is the world’s largest wheat producer and consumer, where it produces 14.83% of the world's total wheat production in 2017. So it is necessary to analyze and evaluate the government policy for wheat production in China using PAM. This research depends on the data has issued by the National Development and Reform Commission/China statistics press 2018 (National farm production cost-benefit survey 2017). The outcomes of this paper showed that the coefficients measures confirm there is government support for wheat production, that indicates, farmers are getting prices higher than global prices by the continuation of the current policy. While there was no comparable advantage has shown for Chinese wheat product in social prices due to the government intervention in the prices of production outputs. Where this policy representation indexes show that the policy for wheat production 2017 supported the farmers on the consumer cost.