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Industrial Hemp: China's Experience and Global Implications

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  • Qingbin Wang
  • Guanming Shi

Abstract

This article examines major factors of China's hemp production and export and derives implications for the global market and the ongoing debate in the United States. Although China's declining hemp production is mainly due to the low relative purchase price, its lack of response to changes in the world market is a result of the extremely low price transmission elasticity from world price to domestic price. One major implication is that China's ongoing market reform is likely to have a positive impact on its hemp production and export and a negative impact on the world price and the projected profit for U.S. farmers.

Suggested Citation

  • Qingbin Wang & Guanming Shi, 1999. "Industrial Hemp: China's Experience and Global Implications," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 21(2), pages 344-357.
    • Handle: RePEc:oup:revage:v:21:y:1999:i:2:p:344-357.
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    File URL: http://hdl.handle.net/10.2307/1349884
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    Cited by:

    1. Usda, 2000. "Industrial Hemp in the United States: Status and Market Potential," Staff Reports 278840, United States Department of Agriculture, Economic Research Service.
    2. T. RANDALL FORTENBERY & Michael Bennett, 2001. "Is Industrial Hemp Worth Further Study in the US? A Survey of the Literature," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 443, Wisconsin-Madison Agricultural and Applied Economics Department.

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