| The prominent problem of "Sannong"decide the realization of wealthy society during the transferring from "planning economy"to "market economy". The contradiction between the "Small farmers"and variational market is the most important problem during all the "sannong"problems. The independent farmers will have to bear the risks coming from the nature and market because of the lag of reformation of system of agricultural product distribution. This contradiction results in the slow increase of farmers'revenue , restricts agricultural marketization, impedes the modernization of agriculture. The thesis analyzes the farmers'dilemma of specialization under the market economy on the theory of specialization and exchange cost. Specialization is the foundation of economic growth, which can improve the labor's efficiency. According to the deepening of labor specialization, the integration of market will be improved; more and more kinds of products will be involved into market; also, more and more enterprises will appear. The improvement of production efficiency, the amplification of market, the increase of per capi are some aspects of labor specialization, which can promotes it's self-propagation and carry about the benignant cycle. When people select the specialization, they must change their products. The exchange need market, enterprises or median organization to harmonize. That's to say, the specialization can be harmonized by market, enterprises and middle organizations. There are different form of coordination because any division of labor produces different transaction cost. Transaction cost not only includes the direct and indirect cost produced in the exchange but also includes the cost caused by opportunism or by the distortion from Pareto Optimum that is the non-economies brought about by the specialization. The organization can save the transaction cost to improve the productivity efficiency. The farmers can select a link or a product to produce in order to improve productivity efficiency. The farmers have to change with environment because of the restriction of some kinds of factors. All of this need transaction cost. When the property rights laws is absent which can reduce the transaction, the farmers will not select specialization. The farmers household have the double-edged goals, which are the "safety first"and "maxim profit", among which "safety"is more important. If farmers select specialization, they may pay high transaction cost due to the imperfection of technology and social system. The too high transaction will reduce farmers'expectation profits, even endanger their "safety first"goal. So the non specialization of farmers is not obviate specialization, just the risk aversion of nature and market, absenting the support of technology and system. The specialization on the market mechanism has serious drawbacks, so many middle organizations come into being. Middle organization is a kind of organization which coordinate the specialization among market and enterprise. The middle organization reduce the transaction cost through signing contact or making constitution between the farmers and agricultural industrializations organizations( agribusiness enterprises and coordinating organization) to integrate the goods and factors exchange. Different organizations have different efficiency and different equity because of their different benefit to farmers. Agribusiness has more efficiency because of higher tractive force and numerous farmers. But the relation between farmers and agribusiness is not stable because all of them wish to get more profits produced by division of labor. The special coordination organization has more equity due to the coherence of farmers and itself. But the coordination organizations have some disadvantages such as small scale, little effect and depending on government., resulting in slow growth. The deepening of division of labor accelerate the new form of economic organization to appear which accelerate the course of labor division. Different economic organiza...
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