International Cooperation on Food Security
YU Xiao-hua, LIU Chang, ZHANG Guo-zheng
Trade liberalization and regional economic integration will not only lead to market integration and efficiency improvement through comparative advantages, but also produce transaction of "virtual resources", such as "virtual water" and "virtual land". Based on the time series model, and the food trade and prices data covering China and Pakistan, this paper first examines the degree of food market integration of the two countries. Secondly, we calculate the net flow of virtual water and virtual land resources accompanied by the rice trade, and analyze changes in resource efficiency. The results showed that: (1) The rice market between China and Pakistan has been highly integrated, but the price of rice in Pakistan is more fluctuant than that in China, and the price elasticity of rice in Pakistan is 1.097 with respect to that of China. This means that if rice price in China increases by 10%, the one in Pakistan will increase by 10.97%. Since the launch of the Belt and Road Initiative, rice price in Pakistan has fallen by 7.8%, which increases the welfare of the poor. (2) After 1988, China had net imports of 3.54 million tons of rice from Pakistan in total, equivalent to 520000 hectares of domestic cultivated land, or 964000 hectares of agricultural land in Pakistan, 3.44 billion tons of domestic water or 10.17 billion tons of water in Pakistan. The empirical results indicate a great difference in the utilization efficiency of land and water resources between China and Pakistan. Although the utilization efficiency of nature resources has been converging after the implementation of the B&R Initiative and the China-Pakistan Economic Corridor Project, the converging speed is not high enough. China should continue to promote the technology spillover to Pakistan and other B&R Initiative countries, help them overcome difficulties in raising low resources utilization efficiency, and increase the yield of rice to finally achieve the convergence of resource utilization efficiency. In global viewpoint, this not only ensures food security, but also saves natural resources, which is in line with the core goal of B&R Initiative: to make full use of comparative advantages in cooperating countries, to achieve free flow of factors and win-win cooperation, and finally build a community with a shared future, interests and responsibilities for mankind.