heavily subsidized, thereby reducing global welfare. However, as
Anderson and Martin (2009) and Huang et al. (2011) note, the
nominal rate of assistance to agriculture in China has been evolving
from taxation to subsidization. If we reran this analysis with more
current data (not yet available), we would expect this aspect of the
efficiency impacts to diminish. While the terms of trade do not
affect global welfare, they are the second largest contributor to
regional welfare changes following the effects of endowment loss.
Because of the higher commodity prices in the global market,
aggregate net exporters benefit from the price change while
aggregate net importers lose