Studies for Chinese Soybean Supply Response Elasticity Based on Extended Nerlove Model

Based on the panel data in 1983-2011 of nine major soybean producing provinces,Chinese soybean supply response elasticity was estimated using the extended Nerlove supply response model. The result showed that:(1)the supply elasticity of soybean area and output to soybeans relative income was far stronger than that of the absolute return;(2)the main alternative crops to soybean were maize,rice and peanut,and while the relative gains of soybean to maize,rice and peanuts decline 1%,the soybean acreage would fell by 0. 123%,0. 128% and 0. 123% respectively,the soybean yield decreased by 0. 136%,0. 155% and 0. 167%,respectively,soybean planting area would be reduced by 0. 462%,0. 389% and 0. 292% for a long time,respectively,and soybean yield decreased by 0. 302%,0. 366% and 0. 302% respectively;(3) the more important of soybean income as the main source of income,the reaction was more sensitive to the changes of soybeans relative income,and the greater of the supply response elasticity. In order to ensure the orderly soybean production in major soybean producing areas and prevent soybean farmers income gap from be widened,in the process of setting target price in future,it should not only consider the price of the absolute change of soybean,but also the comparison price between soybean and the main alternatives.