China's WTO Accession Widens Rural-Urban Income Gap, Hurts Agriculture.
The study looked at how China joining the WTO affects rural areas. It found that while overall welfare improves, gaps between regions and sectors widen. If only agricultural trade is opened up, farmers may suffer as cheap imports hurt domestic production. But if all trade barriers are lifted, farmers and agriculture benefit nationally. Still, urban incomes grow more than rural incomes, widening the gap. Less-developed rural areas may not benefit much and could even suffer because they rely heavily on traditional agriculture.