Assessing the impact of China net imports on the world cotton price
Applied Economics Letters, 2014, vol. 21, issue 15, 1031-1035
China is the first cotton producer and importer in the world. This article investigates the impact its net imports have on the world cotton price. Using annual data from 1976 to 2009, the results show a strong positive and significant impact both in the short and in the long run. These findings are important as it helps policy makers and forecasters to improve the quality of their models. This work could also be extended to other commodity markets as China becomes a major player in the world economy.
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