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Abstract

The paper reviews soybean production and its demand change in China. It proposes that the improvement in technical efficiency of soybean production is indispensable for the increase of soybean output and, in turn, to satisfy the domestic demand for soybean. The paper investigates the technical efficiency, scale efficiency, profit efficiency, and Malmquist index of China’s soybean productivity. According to the result of estimate, the paper proposes that the rapid improvement of China’s soybean production is difficult and China will continue to import soybeans including GM soybeans to satisfy its domestic demand in the future.

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