China has become the second largest economy in the world to analyse theoretical differences in the prices of chinese and american agricultural products using purchasing power assessments. China's economic power has expanded considerably in the face of the financial crisis。
In this case, it is common to compare china and the united states。
Price comparisons are a more common topic。
For a long time, the issue of price differentials between china and the united states has been a hot spot for academic research。
People's disposable income, an important indicator of the income base of the population, is also often used to study the differences in prices and purchasing power of the central american countries。
However, the current average disposable income of central america and the calculation of the gap are based on nominal prices, while the differences in agricultural prices between central america and china are now very different。
Since the prices of chinese and american agricultural products are not uniform, and the purchasing power of the same amount of renminbi and the united states dollar is not the same, measuring the differences in purchasing power of chinese and american agricultural products in nominal terms alone is not sufficient to reflect the true prices of chinese and american agricultural products, so that no reason can be found to solve the problem。
Inspired by the ppp theory, this paper is based on the ppp theory to calculate price differentials for agricultural products in china and the united states in order to eliminate differences in prices for agricultural products in china and the united states, modify international revenues, and account for real income and income differentials。
This paper first analyses price differences in terms of consumer price indices and then uses ppp calculations。
On the basis of these studies, the differences in agricultural prices between china and the united states, as well as the reasons for these differences, were explored and practical solutions proposed。
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