Integration Study Of China’s Wheat Market

China’s rural economic reform has been carried out over30years, the agricultural market has reformed since more than twenty years ago.Studies on the grain market integration can test the market’s efficiency and structure. This paper focuses on the market integration of China’s wheat market to test the markets’efficiency and structure. And this paper also analyzes the integration relationship between the wheat market in China and the international wheat marketOn the base of certain theoretical analysis, this paper uses Johensan Cointegration Test、Error Correction Model to test long-term and short-term integration of China’s wheat markets and international wheat market. The paper also uses Granger Causality Test method to test the dominant relationship between the long-term integration of the markets. This paper has seven chapters. The first chapter is the introduction part, including research background, research methods, the structural framework of this article and the innovation and weakness the article may have. The second chapter is a literature review, including a brief introduction to the theory of market integration, market integration theory definition and classification and researches on wheat market. The paper focuses on spatial market integration by means of Copolymerization. The third chapter is the review of the current China’s wheat markets. What’s more, in this chapter, the paper also gives some introduction about changes of the grain circulation system and the trade patterns of international wheat market. The fourth chapter is the description of the research methods, including the theory of ADF test、Johensan Cointegration Test、Error Correction Model and Granger Causality Test. The fifth chapter is the empirical research on domestic wheat market. And the research shows that China’s wheat market haven’t been a national competitive market.But most of the long-term integration markets also have short-term integration relationship between them. What’s more, the research shows that the wheat market adjusts its short-term price very slowly. The research also shows that, in wheat market, the dominant force is the supply strength. The sixth chapter is the empirical research on international wheat market and China’s wheat market. And we find that the international wheat market and China’s wheat market is not integrated. The last chapter is a full-text summary, and in this part some policy recommendations are provided.