Research On The Cost, Economical Benefit And Compensation Mechanism Of Xinjiang's Cotton

Cotton, as a staple farm produce next to grain in its importance, is a main economic crop in Xinjiang agriculture. The development of the cotton industry not only concerns the farmer's living and the employment of textile workers in Xinjiang, but also concerns the foreign exchange earnings in this region, thus playing an important role in the development in its integrative economy and society. Since 2008, however, influenced by the climate of the international economy, the domestic cotton market has been in new situations:on the one hand, with the speeding export of textile commodities slowing down, the price of cotton can hardly stay erected. On the other hand, the prices of agricultural materials booming up, the cost of cotton growing have increased drastically, resulting in the declining income of cotton growers. Statistics show, since 2007, the acreage of cotton growing in Xinjiang has been decreasing, thus threatening the region's cotton supplies.The cost of cotton production directly affects the profit of cotton growing, the income of the cotton growers and the development of cotton industry. Then, how is the cost of cotton growing and its economic profit from the micro perspective of a cotton grower? How does the national and provincial cotton compensation mechanism affect the sectors in cotton growing and its marketing? What elements outcome significant from the investment in fertilizer, seeds, plastic mulching, manual work, pesticide, farming machine, irrigation, etc.? It is of practical significance to the healthy development of the cotton industry in Xinjiang to get sufficient knowledge of what constitute cotton cost, how to balance the proportion of every element concerning the integrative cost, and how to calculate the cotton cost. It is also of great importance to the income increase of cotton growers and to the competiveness of Xinjiang's cotton in the international market to study how the market price forms and what functions the cost can do to the price.The dissertation takes Xinjiang cotton as the subject of study. First, it expounds the formation of the cost items in cotton production and its mechanism, the economic benefit of cotton, and the basic theories of compensation mechanism in cotton industry, analyses the tendencies in cost changing of Xinjiang cotton, and compares the costs of Xinjiang cotton in regard to different districts. Next, it elaborates with exemplification on the Xinjiang cotton in respect of its cost difference between the north and south Xinjiang, the relationship between its cost and price, and the affecting factors in its economic benefit. Finally, this paper illustrates the cost and the compensation mechanism; some thoughts and measures are suggested for the improvement of the compensation mechanism and for the cotton industry in Xinjiang.The thesis uses the ways of accounting, trend analysis, and computation modal to study Xinjiang's cotton. Firstly, it elaborates the composition and formation mechanism of cotton cost items, the economic benefits of cotton, and the basic theory of cotton compensation mechanism. It analyzes the change trend of cotton cost and makes a regional comparison of cotton costs between the southern and northern in Xinjiang. And then this paper makes an empirical analysis of cotton cost difference between the southern and northern in Xinjiang, the relationship between the costs and the prices of Xinjiang cotton, and factors affecting economic benefits. Finally, this paper analyzes the cost of Xinjiang's cotton and the compensation mechanism, and puts forward the ideas and strategies on how to improve the compensation mechanism of Xinjiang's cotton and the cotton industry. The research content is as follows:Chapter 1:Introduction. It mainly reviews the research background, the research purpose and significance, the domestic and international research trends, and the research contents and methods.Chapter 2:Theoretical analysis and research of cotton costs, economic benefits and compensation mechanism. It introduces and analyzes the composition and formation mechanism of the cotton cost, the economic benefits of cotton, and the basic theory of cotton compensation mechanism.Chapter 3:Analysis of changes in Xinjiang cotton cost and its composition. This chapter selects such two indicators as the total cost per acre and the total cost per unit product from 1995 to 2009. It analyzes the change trends of Xinjiang cotton in the total cost and the production cost, the production cost structure and its movements, and the cotton cost components.Chapter 4:Regional comparative analysis of the cotton cost in southern and northern Xinjiang. First, it describes the distribution of Xinjiang cotton regions. Then it makes an descriptive exposition of the cost benefits of the southern and northern cotton based on the data taken from the random survey of 182 households in 2009, including describing the basic situation of the survey areas, and the descriptive analysis and comparison of the current situation of cotton production.Chapter 5:Empirical analysis of the cost difference in the southern and northern Xinjiang. First, it describes the growing profile of the southern and northern Xinjiang cotton. Then it selects the data of the production cost from the actual random survey of 182 southern and northern farmers in 2009, constructs the log-linear model, compares the prices and earnings of the southern and northern cotton prices, and analyzes why there are differences of cotton costs and economic benefits between the southern and northern Xinjiang.Chapter 6:Empirical analysis of the relationship between costs and prices of Xinjiang cotton. Selecting such data from 1990 to 2009 as Xinjiang cotton output of major products, the price index of agricultural production means during the same period, the cost of cotton production per 50 kg, the average selling price per 50 kg, and the additional cost of cotton production, this chapter establishes the theoretical model of the cotton cost and revenue, does the relevant tests, and estimates and analyzes the relationship between the costs and prices of cotton.Chapter 7:Analysis of the situation of Xinjiang cotton costs and economic benefits. First, it introduces the model of factors affecting economic benefits of cotton. Then, it selects the data of cotton costs from the actual random survey of 182 cotton farmers in the southern and northern in Xinjiang in 2009, establishes a production function, and makes a regression analysis. Using Blinder-Oaxaca method, this chapter analyzes the factors affecting economic benefits.Chapter 8:Analysis of Xinjiang cotton cost and compensation Mechanism. This chapter makes this analysis from endogenous compensation and exogenous compensation.Chapter 9:Ideas and strategies on how to improve the compensation mechanism of Xinjiang cotton and the cotton industry. According to the above analyses, this chapter puts forward ideas of perfecting the compensation mechanism of cotton and countermeasures of developing Xinjiang cotton industry.Chapter 10:Conclusion. This chapter mainly talks about the research summary, the conclusion and the issues such as innovation and limitations.