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China Apple Import

Posted on:2015-01-21Degree:DoctorType:Dissertation
Country:ChinaCandidate:J J SunFull Text:PDF
GTID:1109330434960562Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
Apple plays an important role in China agricultural economy and has strongcompetitiveness. Especially in Bohai Gulf and Loess Plateau, apple production, store, processand logistic are main source of increasing income for apple producers and managers. ChinaRural Statistical Yearbook indicates that, the total apple plating area reached2.17millionhectare, apple quantity arrived at35.98million MT and total value was160billion Yuan in2011. Take the example of China apple export, the accumulated export amount of applereached6.47million MT, took24%of world apple export and was worth4.6billion dollarduring2007-2012. With the increase of apple planting area and supply, China import applerise up sharply. The quantity of import apples increased from670MT to61.5thousand MTand the amount of which rose from70.95thousand dollars to92.34million dollars in1992-2012. Especially during2006-2010, the average increase rate of annual import quantityand amount reached21.26%and32.15%respectively. The increase rate of import nearlytripled than export and import amount and30.02%more than export. Consequently, it’smeaningful to make an empirical research on the trend and features of China apple imports(short for CAI) and explore the change of competitiveness of domestic and imported apple.Furthermore, it’s essential to make a long time plan to transfer apple industry from extensivedeveloping mode depending on factors input to extensive developing mode depending ontechnique progress.This study learns from literature about agricultural trade and builds a theoreticalframework for analyzing CAI and relative characters based on the theory of competitiveness,import demand, consumer behavior and segment market. To indicate the features anddisciplines of CAI, we estimate the reason for CAI increase, the determinants and theexpenditure elasticity, price elasticity of China consumers to the imported apple from Chile,United States, New Zeeland and Japan. We also make an empirical analysis on the consumers’behavior and determinants in aggregate markets and segment market. At the same time, wecome up with relative policy applications to improve the competitiveness of CAI.The main results as following:Firstly, from the analysis of features of CAI, it is evident that the quantity of importedapple increase in an unlinear path. Unsimilarly, import value goes up in a linear way and itsrate is higher than import quantity. Except in the year of2001/02, the real apple import amount is lower than potential amount. Consequently, China apple import amount willcontinue to rise up in the future.The market structure of China apple import displays a high degree of marketconcentration. Specifically, the CI (Concentration Index) during1992-2012is over than95.00%and the average value of HHI (Herfindahl-Hirschman Index) reached0.42. The trendof import value and amount from Chile and United States are consistent with China. However,it’s the price change rather than export strategy of Japan apple result in the addiction to Chinaapple market. Generally, the tariff barriers of China apple import is gonging lower, but thenon-tariff barrier rise oppositely.Secondly, from the analysis of the reason and inside and outside determinants of CAI,the result indicates that the increase of CAI are mainly affected by international economy,domestic economy, market structure and interactive effect of them. Wherein, import gravity isthe main and positive determinant to CAI increase, which contributes more than90%to theincrease in Lingering Period (1992-2004), Pre-increase Period (1998-2004), and Fast IncreasePeriod (2006-2011), excepting the Depression Period (2004-2006). In other words, it’s themarket demand lead to the high increase rate of CAI.Subsequently, the study of China consumers’ demand law and characters to the applesfrom Chile, United States, New Zealand and Japan suggests that the imported apple mainlydistribute in the high-end markets according to the Four-dimensional Model of the PriceSensitivity. There is no substitutional relation between import apple and domestic applejudging by differentiation analysis. To the apple imported from Chile, Unites States, NewZealand and Japan, China consumers expenditure elasticity is positive, of which it’sinelasticity to the United States apple, which means the effect of change of China consumersapple import expenditure on the apple import from Unites States is not significant. It is elasticto the apple from Japan and the elasticity reaches5.49. In other words, given other conditions,the increase of consumers’ expenditure will encourage Japan’s apple export, vice versa. Theexpenditure elasticity of the apple from Chile and New Zealand arrives at1.The effects ofOwn-price elasticity of Chile, United States and New Zealand is significant, but Japan apple’selasticity is not significant. There is substitutional relation between the apple from Japan, NewZealand and Unites States and complementary relation between the apple from Japan, NewZealand and Chile. Therefore, seasonal differentiation of CAI is quite obvious.Then, the study of China customers’ behavior of apple consuming and their determinantsshows that price has negative on the imported apple consuming evaluation and behavior,which indicates that imported apple doesn’t enjoy the advantage of price and it’s possible forimported apple to be substituted by domestic apple. With the advantage of lower cost and price, domestic fruit enterprises could have used price strategy to ensure the local apple tocompete with imported, protect the inside market safely and make sure the continueddevelopment of apple industry in Bohai Gulf and Loess Plateau. The specific properties,quality safety and advertisement of imported apple have positive effect on consumers’evaluation. At the same time, specific properties, quality safety and consumers’ evaluationhave positive effect on consuming behavior, which means, besides world apple productionand seasonal supplying, China consumers have preference to imported apple, namely quality,taste, trust, and fashion. Consequently, China consumers preferences are the main power topromote the imported apple demand, market increase and import rising.Finally, research of segment customer behavior and its determinants declares that thepreferences of differentiated market groups are quite various and the imported apple meets thediversified demand of high-end markets and segment markets. Specifically, both male andfemale pay attention to price and female concern more on specific properties than male; malegive more attention to advertisement and quality safety and they are more likely to transferevaluation results to action. With the improvement of product promotion and brand awareness,it enables low income group to transfer the potential demand to purchasing power of importedapple; For the middle income class, the more they know about quality safety of importedapple, the more likely to transfer the consuming evaluation to purchase; For the high incomeclasses, the more trust they give to specific properties and quality safety, the higher evaluationand potential purchases. These groups have lots of real demand because of the strongpurchasing power. The imported apple from United States and Chile has more price advantagethat the one from Japan and New Zealand; and the imported apple from United States havebrand advantages than others. However, the specific properties of the imported apple fromJapan and New Zealand have more competitive advantages than the one from United Statesand New Zealand.In summary, the above analysis describes the discipline of CAI and reveals the innermechanism of the fast increase of CAI. Based on the study of the effect of imported apple onChina apple industry development, we come up with some policy applications, namelystandardize apple production and promote apple quality; focus on diversified consumingpreferences and apply differenced market strategy; Exert the function of industry organizationand strength the build of apple market information system; reinforce the build of applelogistic system; Make good use of WTO rules, play a part in WTO business, break technicaltrade barriers, enlarge international market percentages and improve apple trade conditions.
Keywords/Search Tags:Import, Consuming Behavior, Structural Equation Model, Apple, China
PDF Full Text Request
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