| The sericulture and silk industry is the most favorable sector in China which has 5500-years history, includes many sections, such as planting mulberry, feeding silkworms, reeling silk from cocoons, knitting the silk and processing garment and export section. China has comparative advantages in production and exports in this industry. Since 70' s in 20 centuries, China has been the largest country in production and export silk products in the world. Nowadays, nearly 20 millions peasants' households are engaged in the cocoon production, the total output of cocoon and silk in China accounts for 75% of the world, and 70% of them has been exported to the other countries, which accounts for 80% in the world market. The export value is around USD 5 billions per year. It would arouse the common development in those regions if sericulture and silk industry could keep on sustainable development, particularly helpful for resolving the rural problems in China.During last two decades, this industry had experienced several fluctuations in the process of transformation from the planned-economy to the market economy. It seems hard to reform in this industry because of many difficulties. The cocoon is one of few selected agricultural products which price is regulated by government, even after this kind regulation of most primary products had been abolished and their distribution channels had been opened. The cocoon's price is the most important factor in the warfare determination and distribution among those sections.This dissertation is divided into eight chapters. The first chapter is an introduction; the second chapter is a survey of the theories and policies of price regulation in primary products. From chapter three to eight, I analyzed the characteristics of cocoon product and market, andthen, I study two questions, one is the cocoon price and the institution change of circulation system, the other is the economic effects of price regulation in silkworm cocoon. After comparing with the cocoon price and the circulation system both in China and abroad, then I get the following creative conclusions.1. The essential of cocoon price regulation is a monopsony based on government administration. Under the market structure theoretic frame, first, I compared the monopsony with the other, and then proved that economic efficiency dead loss of cocoon price regulation and the inequity of distribution. I find that under the administration monopsony in the domestic cocoon market, the situation of China silk firms experienced the changes of their status, from monopoly to oligopoly then perfect competition, and even reverse to monopsony in the international silk product market. We can draw a conclusion that market combination evolvement is the source of silk firms and government maintains the price regulation together.2. The cocoon price of China is a kind of government control in general; rather, it is a price ceiling. Through "Racing to the bottom cocoon war" model, regional segmentation "cocoon war" model, real price fluctuations model and cocoon production region migration model under regulation, Proved that price regulation on cocoon pricked up the fluctuation of the price and leaded the industry declined and flourished in turn.3. The regulations of cocoon price and market admittance had maintained the regulatory barriers to entry and weakened the marketing barriers to entry. The silk firms enjoyed the regulatory barriers and have no motivations to set up the marketing regulations, which had led scales of those firms are so small, that they can not achieve the scale economy. And at the same time, they have the same export structure, most of...
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