The Interaction between Chinese Export Price and World Import Price of Tangerines

Abstract

With the accelerating of economic globalization, the effect of foreign factors on Chinese tangerines export is more and more obvious, which is mainly expressed as the fluctuation of Chinese tangerines export price. The article uses SVAR, impulse response analysis and variance decomposition to analyze the interaction between Chinese export price and world import price of tangerines from 1961 to 2007. The research shows that: (1) periodicities of the two prices are obvious; (2) fluctuation frequency of Chinese export price is high and its fluctuation range is low, while that of world import price is just the opposite; (3) changes of Chinese export price are mainly affected by its own fluctuation, while world import price is not only affected by its own fluctuation but also shocked by Chinese export price; (4) fluctuation characteristics of two prices indicate that there is serious price distortion in world tangerines market, so it requires carrying on multilateral negotiation under WTO agreement to eliminate trade barriers in tangerines market and to improve the world welfare.