Impact of trade liberalization on farmers´ welfare∗: — From the perspective of consumption and price transmission

This paper analyzes the impact of trade liberalization on farmers´ expenditure in terms of price transmission pathway. As the first step, price transmission pathway is analyzed of how trade liberalization affect domestic consumption price. Then the impact of price changes from trade liberalization on farmers´ expenditure is explored. The findings show that trade liberalization has brought significant different impacts on the price of different commodities, and thus different impacts on farmers´ expenditure of different regions and income brackets.