Explaining virtual water trade: A spatial-temporal analysis of the comparative advantage of land, labor and water in China

Main author: Zhao, Dandan
Other authors: Hubacek, Klaus
Feng, Kuishuang
Sun, Laixiang
Liu, Junguo
Format: Journal Article           
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id eprints-30764
recordtype eprints
institution SOAS, University of London
collection SOAS Research Online
language English
language_search English
topic HD Industries. Land use. Labor
HD28 Management. Industrial Management
H Social Sciences
description The well-known “virtual water hypothesis” states that water-deficient regions/countries could alleviate water stress through importing water-intensive products from water-abundant regions/countries. Although observed trading patterns do often not support this hypothesis, there is a lack of research to explore the reasons why trade patterns often do not support the intuitive virtual water hypothesis. To fill this important gap, we introduce comparative advantage theory in a quantitative way to track the driving forces of net virtual water export based on the spatial-temporal distribution of resource productivity and opportunity costs of land, labor and water use in agricultural and non-agricultural sectors across Chinese provinces between 1995 and 2015. The results show that regional differences in land productivity between agricultural and non-agricultural sectors are the main forces determining the pattern of virtual water flows across major regions, and other resources such as labor and water have played only a limited role. Our study shows that the current market forces reflect the scarcity of land resources, but does not reflect the water scarcity in the context of interregional trade in China. Our findings suggest that the ongoing efforts to increase land productivity of agriculture in the southern regions would contribute to reducing water scarcity in the North and Northeast China Plain.
format Journal Article
author Zhao, Dandan
author_facet Zhao, Dandan
Hubacek, Klaus
Feng, Kuishuang
Sun, Laixiang
Liu, Junguo
authorStr Zhao, Dandan
author_letter Zhao, Dandan
author2 Hubacek, Klaus
Feng, Kuishuang
Sun, Laixiang
Liu, Junguo
author2Str Hubacek, Klaus
Feng, Kuishuang
Sun, Laixiang
Liu, Junguo
title Explaining virtual water trade: A spatial-temporal analysis of the comparative advantage of land, labor and water in China
publisher Elsevier
publishDate 2019
url https://eprints.soas.ac.uk/30764/