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China's Beer Consumption and Barley Imports



China has emerged as a large beer producer and barley importer but few empirical studies have been reported. This study estimates demand elasticities for alcoholic beverages and tea, using China's urban household survey data, and investigates major sources of the rapid growth in China's beer consumption and barley imports. Results of an empirical demand analysis indicate that demand for beer and wine is elastic with respect to income but inelastic with respect to both own and cross prices. Findings from this study suggest that China's beer demand and barley imports will continue to grow at significant rates.

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