Study On Comparative Advantage Of China's Soybean

Soybean is one of four main grain crops in China, but.the speed of soybean production and trade is relative slow. The soybean economy will become a very important part of the global economy with China entering the WTO soon. It is very important to locate soybean production in China and to discuss its comparative advantage in external and home trade, because it may increase our Agricultural products?international competitive capability, and promote our economic development. Based on a great many of statistic data., this paper adopts analytical way combining theoretic analysis with demonstrative study, combining quantitative identification with qualitative analysis to deep and systemic investigate the comparative advantage of China soybean.Firstly, in home production and trade, this paper compared with the four main grain crops: rice, wheat, corn and soybean according to indexes of production scale, cost of production, return of per plant unit, cost rate of return, pure income of labor, quantity of import and export, favourable policy, reveal comparative advantage index. The results indicate that soybean in China has some comparative advantage than other three crops, and the arrange order is rice, soybean, corn, and wheat. Secondly, compared with other main soybean production countries based on the indexes: production scale, cost of production, return on tax relief, cost rate of return, reveal comparative advantage index. The results show that China locates the medium level among the eight main countries of soybean production in the world, and there are the potential advantages to be developed in China. Thirdly, compared with the Asian countries around China based on the index of production scale, quantity of import and export, etc. China has stronger comparative advantage in Asian area. Finally, after researched on the adjustment of soybean structure and policies, also give some strategy suggestions to government departments, teaching and research units.