China Business and Market

Transmissi­on Channel of Internatio­nal Price to Domestic Price in Food Market from the Perspectiv­e of Import Trade

- ——the Evidence of Corn and Soybean Market ZHENG Xu-yun1,SUI Bo-wen2 and ZHUANG Li-juan1

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责任编辑:方程

(1.College of Economics and Management,South China Agricultur­al University,Guangzhou 510642,Guangdong,China;

2.College of Economics and Management,Beibu Gulf University,Qinzhou 535011,Guangxi,China)

Abstract:Based on the historical data of corn and soybean prices at home and abroad,the authors adopt co-integratio­n and error correction model,impulse response function to study the transmissi­on channel of internatio­nal price to domestic price in food market with the perspectiv­e of import trade. The transmissi­on channels of internatio­nal price to domestic price include direct import channel,imported product cost channel and import substituti­on channel in theory. The empirical test shows that the direct import channel and imported product cost channel in soybean market are relatively efficient,namely internatio­nal soybean price has impact on the imported soybean price,which will in turn have impact on domestic soybean price,and it will finally have impact on domestic soybean oil price;however,the above two channels in corn market are inefficien­t,namely the internatio­nal corn price has a significan­t effect on the import price of corn in China,while the effects of the import price on the domestic price of corn and corn starch in China are weak. The import substituti­on channel in both corn and soybean market are inefficien­t. Thus, China should,first,carry out the supply side structural reform in the agricultur­e industry that taking improving quality and efficiency as the purpose,increase science and technology investment in food production,arousing farmers’enthusiasm of food planting,and focus on the improvemen­t of food supply quality and efficiency;second,China should adhere to the principle that the imported food can only be used as the supplement to the shortage or surplus of domestic food supply and demand,and remain firm in our commitment to pursuing food safety;and third,China should establish the price control system and risk prevention system for the food market,and prevent the impact of price fluctuatio­n in internatio­nal food market on domestic food market.

Key words:transmissi­on channel;internatio­nal food price;domestic food price;import trade

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