Industrial hemp: China's experience and global implications
1999
Wang, Q. | Shi, G.
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.
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