The Research On Hainan Natural Rubber Industry And Foreign Trade

Natural rubber, one of the four important industrial raw materials, is scarce, deficient and strategic resource indispensable for national defense and industrial construction. Recent international gross demand for natural rubber has been steadily rising; international export resource of natural rubber has been decreasing annually. The rubber growing regions of Hainan are suitable for the cultivation of rubber plantations, which accounts for about 60% of China's total output, with the province producing a record 230,000 tons in 2004. Hainan is currently seeking to develop their own rubber plantations by inviting overseas investment and looking for expansion in cooperation with Cambodia, Vietnam and Malaysia. Therefore, it is important to scientifically recognize economic status of Hainan natural rubber industry and its foreign trade.This article makes a study of the nature of economic growth in gum of Hainan rubber industry. It points out the growth is an internal one, which is promoted by gum-ripping acreage and technical progress, which is restricted by the number and quality of gum-engaged staff. Market conditions along with technologies, institutional arrangements are each seen as crucially influencing Hainan rubber sector adjustments to economic growth. The biggest challenge in Hainan's rubber industry is not the lack of government supports, the poor and limited land and labor, but weak institutions and technology innovation that make latex producing management costly. The institutions, which are important in reducing transaction costs, may be even more important than the price incentives for its transition of non-active management into active management. Therefore, the priority in policy planning is to emphasize the development of institutions in order to significantly reduce rubber planting and processing costs and to provide more security and confidence to rubber farmers. This paper offers complete coverage of the Hainan rubber industry, spanning analysis of trends of production, consumption, international trade, stocks and prices of natural rubber. The study, its approach and findings will be of real value to all associated with the rubber sector...