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Abstract
Simultaneous equation models of the soyabean sectors in Japan and Taiwan are
developed and estimated through seemingly unrelated regressions. The models integrate domestic supply
and demand for soyabeans, soyameal, and soyaoil as well as the livestock market. Based on the
established models, the impacts of economic growth and policy simulations on these markets are evaluated
and compared by performing dynamic simulation analyses. Growth factors had greater impacts on
soyabean import demand than did policy factors, and growth impacts themselves were more significant
in Taiwan than in Japan. A 10-percent currency devaluation with respect to the US dollar would only
decrease soyabean import demand in Japan and Taiwan by 0.17 and 0.35 percent, respectively. A 10-
percent increase in the soyabean support price would stimulate growth in domestic soyabean import
plantings of 16-54 percent in Taiwan and 9.93 percent in Japan. A 10-percent increase in Taiwan's net
livestock exports or a 10-percent decrease in Japan's net livestock imports would increase soyabean import
demand by 0.12 and 0.48 percent, respectively. Increased demand for soyameal and a decline in demand
for soyaoil were also noticed. If the profitability of soyabean crushing were improved, soyabean import
demand would increase and demand for meal and oil would decrease.