Files
Abstract
This research conducts a competitive structure analysis of the Chinese soybean
import market which leads to the hypothesis that China’s soybean importers may
have stronger market power in China’s soybean import market. Then, this research
develops and simultaneously estimates a two-country partial equilibrium trade
model to test U.S.-China market power of soybean trade. The empirical result
supports our hypothesis that Chinese soybean importers have stronger market
power relative to U.S. soybean exporters. This Chinese market power can be
countered by U.S. and South American companies through developing new and
expanding existing markets for soybeans throughout the world and investing in
Chinese soybean storage and crushing capacity.