The role of price risk in China’s agricultural and fisheries exports to the US

Dengjun Zhang, Yuqing Zheng

Research output: Contribution to journalArticlepeer-review

14 Scopus citations


This article explores the effect of price risk on the US importers’ optimal allocation of agriculture imports between the major supplier, China, and other competing countries. We first modify a demand system to account for the impacts of own-price risk and cross-price risk, and then apply the model to 16 agricultural and fisheries commodities exported to the US. The estimation results show that importers are sensitive to price risks of 14 Chinese commodities. Comparisons between price risk–trade relations of agricultural and fisheries products and between trade effects of cross-price risk on Chinese goods and substitutes provide strong evidence for explaining the observed trade patterns. Our study highlights the importance of price stability in promoting international trade, especially from developing countries to developed countries.

Original languageEnglish
Pages (from-to)3944-3960
Number of pages17
JournalApplied Economics
Issue number41
StatePublished - Sep 1 2016

Bibliographical note

Publisher Copyright:
© 2016 Taylor & Francis.


  • Agriculture
  • import demand
  • price risk

ASJC Scopus subject areas

  • Economics and Econometrics


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