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China's soybean product imports: an analysis of price effects using a production system approach

Wei Chen (School of Public Economics and Administration, Shanghai University of Finance and Economics, Shanghai, China)
Mary A. Marchant (Agricultural and Applied Economics, Food and Agricultural Education Information System, Virginia Tech, Blacksburg, Virginia, USA)
Andrew Muhammad (Market and Trade Economics Division, Economic Research Service, US Department of Agriculture, Washington, District of Columbia, USA)

China Agricultural Economic Review

ISSN: 1756-137X

Article publication date: 16 November 2012

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Abstract

Purpose

The purpose of this paper is to estimate China's demand for imported soybeans and soybean oil from both country‐of‐origin and product form perspectives.

Design/methodology/approach

A differential production approach is used to estimate China's demand for imported soybeans and soybean oil. The empirical demand estimates are then used to derive conditional and unconditional elasticities of demand for each exporting country with respect to changes in domestic and import prices, and the price of resources used in soybean meal and oil production.

Findings

Results indicate that both country‐of‐origin and product form competition exist in the Chinese market. Estimation results indicate that China's soybean meal prices significantly impacted its soybean and soybean oil imports. Seasonality is detected in China's soybean imports, but not in soybean oil imports.

Practical implications

The findings suggest that, in addition to country‐of‐origin competition, product form competition should be considered when analyzing China's soybean demand.

Originality/value

This paper contributes to a better understanding of China's soybean import market by integrating both country‐of‐origin competition and product form competition into a single demand framework.

Keywords

Citation

Chen, W., Marchant, M.A. and Muhammad, A. (2012), "China's soybean product imports: an analysis of price effects using a production system approach", China Agricultural Economic Review, Vol. 4 No. 4, pp. 499-513. https://doi.org/10.1108/17561371211284849

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited