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A Study on the Impact of Constraints from Exporters' Exporting Prowess on Source Distribution of China's Soybean Imports

Author

Listed:
  • Lin, Dayan
  • Wu, Guosong
  • Zhu, Jing
  • Yang, Fan
  • Aniah, Dominic

Abstract

Over two decades, distribution of China’s soybean import sources changed significantly. Price as is implied in traditional HO theory is unable to justify that change. Instead, the seasonality of agricultural production may contributes more to changes on import source of soybean by seasonal supply constraints. Based on exporters’ decision-making behavior, this paper analyzed the impact of constraints from exporters’ exporting prowess on China's import source distribution from the perspective of seasonality, using monthly data of China and the three major soybean exporters from the year 2010 to 2013. Empirical results show that an exporting country takes up a significantly bigger share in China’s soybean imports in its harvest season than in non-harvest season. Changes on import source result from dynamics of comparative advantage of exporting countries. Taking seasonal complementarities and comparative advantages of exporters into consideration, China may make good use of world resources and stabilize domestic supply of food.

Suggested Citation

  • Lin, Dayan & Wu, Guosong & Zhu, Jing & Yang, Fan & Aniah, Dominic, 2015. "A Study on the Impact of Constraints from Exporters' Exporting Prowess on Source Distribution of China's Soybean Imports," 2015 Conference, August 9-14, 2015, Milan, Italy 211562, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:211562
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    File URL: http://ageconsearch.umn.edu/record/211562/files/Dayan-Analysis%20on%20the%20Impact%20of%20Seasonal%20Factors%20on%20China_s%20Soybean%20Imports%20Source%20Distribution-345.pdf
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    References listed on IDEAS

    as
    1. Song, Baohui & Marchant, Mary A. & Reed, Michael R. & Xu, Shuang, 2009. "Competitive Analysis and Market Power of China’s Soybean Import Market," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 12(1), pages 1-22, February.
    2. Mario A. Margarido & Frederico A. Turolla & Carlos R. F. Bueno, 2007. "The world market for soybeans: price transmission into Brazil and effects from the timing of crop and trade," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 17(2), pages 241-270, May-Augus.
    3. Frank Asche & Trond Bjørndal & Kjell G. Salvanes, 1998. "The Demand for Salmon in the European Union: The Importance of Product Form and Origin," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(1), pages 69-81, March.
    4. Yang, Seung-Ryong & Koo, Won W., 1994. "Japanese Meat Import Demand Estimation With The Source Differentiated Aids Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-13, December.
    5. Chang, Hui-Shung (Christie) & Nguyen, Chi, 1997. "The elasticity of demand for Australian cotton in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), pages 1-15.
    6. Sarahelen Thompson, 1986. "Returns to storage in coffee and cocoa futures markets," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 6(4), pages 541-564, December.
    7. R. Carew & W. J. Florkowski & S. He, 2004. "Demand for Domestic and Imported Table Wine in British Columbia: A Source-differentiated Almost Ideal Demand System Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(2), pages 183-199, July.
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    Keywords

    Crop Production/Industries; International Relations/Trade;

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