Trade Structure, Price Co-integration on Oilseeds and Vegetable Oils between China's Market and Internationa Market: 2000-2009

Abstract

Since the 21th century, China's edible oils industry has been growing drastically, oilseeds and vegetable oils import increase dramatically. At present, China is one of the largest producers, consumers and importers of oilseeds and vegetable oils in the world. This paper analyses trade situation of oilseeds and vegetable oil, and discusses the integration and causality between China's market and international market for soybeans, soybean oil, rapeseed and rapeseed oil. It is found that: (1)There exists co-integration and two-way Granger causality relationship between China's soybean market and international soybean market. (2)There exists co-integration relationship between China's rapeseed market and international rapeseed market, but there doesn't exist Granger causality relationship between rapeseed markets. (3)For soybean oil and rapeseed oil, there doesn't exist co-integration and Granger causality relationship between China's market and international market.