Study On Vertical Cooperation Relationship Of The Cocoon Silk Industrial Chain In China

Cocoon silk industry is the traditional competitive industry in China. Although Chinese cocoon silk outputs and exports size for silk goods have dominated the world for a long time, the whole industrial chain was in unstable condition since 1990s, which shows in fluctuating production, changing prices, shortening cycle and enlarging risks in the upper and middle parts of the industry. Silkworm raisers are confronted with much more prominent contradiction between the small production and large market circulation and it becomes harder and harder to coordinate the relationship among all operating entities. Since cocoon production and acquisition processing (silk reeling) are two fundamental and crucial links in the entire cocoon silk industry chain, strengthening the vertical cooperation between them and establishing a mutually beneficial and win-win cooperation mechanism between silkworm raiser and cocoon acqusition processing enterprise are important approaches to solve the unstable operation of China's cocoon silk industry chain, as well as the key to promote healthy and orderly development of the industry.On the basis of looking up and analyzing a large number of related literatures at home and abroad, visiting relevant experts and filed investigation, under the guidance of industrial chain theory, vertical cooperation theory, game theory, transaction cost theory and principal agent theory, this thesis applies such methods as system analysis, comparative analysis, summarizing and model analysis, and focuses on such issues as the forming mechanism of vertical cooperative relationship in the cocoon production, acquisition processing links, the game model, empirical analysis, countermeasures and suggestions, etc. to have deep and systematic research on them on basis of systematic analysis on the cocoon silk industrial chain.Accurately seizing the development characteristics and tendency of cocoon production and cocoon silk industry is the foundation for research of this thesis. This paper summarizes the composition and functional subjects of the cocoon silk industrial chain, analyzes the characteristics of each link, sums up the overall general rule of cocoon silk industrial chain, and comprehensively and systematically analyzes the development conditions of cocoon silk industry around the world from the three aspects of characteristics, effects and issues by making use of the three-dimensional analysis framework of factor dimension, space dimension and time dimension. The study shows that professional, large scale and industrial operation is the leading direction for future development of cocoon production in China. On the basis of stabilizing cocoon filament output, strengthening national macro-control, optimizing industrial chain organizational pattern, increasing the support to research, development and technological innovation, controlling the growth of acquisition and processing capacity and promoting effective competition of the industry are the key points to ensure the healthy development of China's cocoon silk industry.One focal point of this thesis is to analyze the formation mechanism of vertical cooperation relationship in the cocoon silk industry chain. Through analyzing the causes for formation of the vertical cooperative relationship in the cocoon silk industry chain, this thesis discusses the formation mechanism of vertical cooperation relationship in cocoon production, acquisition and processing links from the four aspects of driving mechanism, transmission mechanism, promotion mechanism, guarantee mechanism. The study shows that the causes for formation of the vertical cooperative relationship between silkworm raiser and cocoon acquisition and processing enterprise lie in the stable channels, increasing benefits and avoidance of risks. Through vertical transmission of the"attraction-transmission"mechanism, both parties have cooperative game, attraction identification and reasonable selection; through horizontal coordination of the"promotion-guarantee"mechanism, the vertical cooperative relationship is guaranteed and strengthened. Each influencing factor in the mechanism takes effect so as to promote cooperation degree between both parties; all the mechanisms will then influence, depend and facilitate each other to form the positive cycle of"vertical cooperation→improving performance→reasonable distribution→promoting vertical cooperation".The cooperation & coordination, the choice of performance behavior between silkworm raiser and cocoon acqusition processing enterprise are keys to formation of vertical cooperation in the cocoon silk industrial chain, as well as the result of game and rational choice for cooperative behaviors between both parties. Through making use of game theory and transaction cost theory to analyze the behaviors of cocoon acquisition and processing enterprises and silkworm raisers, this thesis elaborates the motives and influencing factors for the breach of contract by both parties, and also analyzes the game mechanism between them; builds the game model for behaviors of cocoon acquisition and processing enterprises and silkworm raisers, determines the optimum probability of default by silkworm raisers and also the optimum probability of supervision by acquisition and processing enterprises, and analyzes the relation between the effects of influencing factor for the behavior choice of both parties. The study shows that the behavior choice of both parties is actually a decision making process with dependency and confrontation, cooperation and conflict between them, that is a process to seek for the game equilibrium point. Through reducing risk preference, abnormal return from default and supervision cost, and also increasing default punishment, credit loss and potential loss, cooperative behaviors between both parties can be improved and optimized.Empirical analysis is the important part after theoretical discussion in this thesis. By making use of the 683 questionnaire surveys and field interview data from such provinces as Shandong, Guangxi etc., this thesis has a descriptive statistics from the four aspects of production&operation conditions, systematization condition, cooperative relationship between silkworm raiser and cocoon enterprise as well as the prediction of the development prospects of silkworm industry. Besides, it emphatically analyzes the willingness of silkworm raisers to take part in the vertical cooperative relationship, carries out quantitative analysis from the total of 9 variables in the four categories of decision-making characteristics of silkworm raiser, production characteristic, operation characteristic and organization characteristic, and analyzes major influencing factors that affect the willingness of silkworm raisers to participate in the vertical cooperation. The study shows that silkworm raisers'willingness to take part in vertical cooperation is mainly subject to influence of the five factors, i.e. education years, feeding scale, inputs source, cocoon sales model and contract-signing. Among them, the inputs source have negative impacts on the cooperation willingness; while the rest four factors have positive impacts on the cooperation willingness. The feeding scale, sales mode and contract-signing have large impacts on the cooperation willingness; the inputs source has smaller impacts on the cooperation willingness; while the education years has the least impact on the cooperation willingness.Countermeasures and suggestions are the deepening of the previous research. In terms of relevant factors such as information, market competition structure, cocoon silk management system, incentive polity and restrain measures, etc. in the 4 mechanisms in favor of formation of the vertical cooperative relationship, for the purpose of being in favor of the strengthening of game equilibrium point towards vertical cooperation and the enhancing of willingness to be involved in vertical cooperation, this thesis proposes such specific measures to promote the smooth operation of vertical cooperation mechanism in the cocoon silk industry: strengthening macro-control, completing management system and cocoon price circulation system, optimizing the organizational pattern in cocoon silk industry, improving the production and operation conditions of silkworm raisers and optimizing behaviors of cocoon acquisition and processing enterprises.