Study On The Economies Of Scale And Economies Of Scope Of Farmers, Specialized Co-operatives

Famers' specialized co-operatives has gradually formed a new type famers' specializedco-operatives based on giving priority to the household contract management andoutpus-related dual operation system, which experience the embryonic stage, underway stageand deepening development stage and so far, the farmers' organizational, specializedproduction, distribution of regional and service socialization are an important characteristicsof the new type farmers' specialized co-operatives. The agricultural modernization hasbecome the big development trend satisfied the market needs with the development of marketeconomy as deepening reform of the rural economy, meanwhile, realizing agriculturalmodernization also would start begin from cultivating and developing the efficientagricultural microstructure—farmers' specialized co-operatives. In recent years, various typesof farmers' specialized co-operatives developed fast, rising sharply, coverage and service offarmers' specialized co-operatives are also expanded rapidly, and accumulating some valuableexperience and exploring some of the good development path. But there still existsdiseconomies of scale in the prosperity process of co-operatives with the apperance of smallscattered, loose and disorderly.Not only farmers' specialized co-operatives economies of scale and scope is a theoryproblem, but also an empirical questions. Economies of scale depicts the relationship betweenscale and cost-benefit of farmers' specialized co-operatives, while else economies of scopedepicts the cost-benefit status of the various services offered by co-operatives.Therefore,exploring existence of the economies of scale and scope of farmers' specialized co-operativesand testing the economies of scale and scope of farmers' specialized co-operatives. This paperalso gives a qualitative and quantitative analysis to the exsitence of economies of scale andscope in co-operatives. Study on the economies of scale and scope would provide explaintheory for the expand wave presented at present, also offer a method and for expandingboundary of the farmers' specialized co-operatives.Finally, according to the theory and theempirical results, giving some suggestion and strategy for realizing economies of scale andscope of farmers' specialized co-operatives. There are seven chapters in this dissertation:Chapter1expounds the research background, purpose and significance of this study,reviewing and summarizing the research dynamic of economies of scale and scope ofco-operatives domestic and overseas, carding the train of thought, confirming the method ofthis dissertation and putting forward the possibility of innovation.Chapter2discusses the theory basis of economies of scale and scope and details therelationship among economies of scale, economies of scope and return of scale in theeconomic theory, also summarizing the measurement function of economies of scale andscope usually used in the economics.Chaper3uses methods of qualitative analysis the economies of scale and scope ofcooperatives. Expounds the theoretical foundation of the generation of co-operatives andanalizes the reason of generation and implication of co-operatives in view of the new classicaleconomics theory, social organization theory, industrial organization theory, market forcesequilibrium theory, transaction cost theory, system innovation theory and competition theory,discussing the existence of economies of scale from the perspective of input-output theory, thefunction of co-operatives and the transaction cost theory, also analyzing the economies ofscope undering the angle of asset specificity and famer trading pattern, which establish thetheory basis for the research of next chapter.Chapter4uses quantitative analysis method talk about scale and scope economies forcooperatives. Concludes and compares the empirical studies of economies of scale and scopeabroad for choosing the most appropriate research method in this dissertation. The studymethods abroad defined the inputs and outputs firstly, and then using the diverse cost functionto study economies of scale and scope of co-operatives. Sorting technique for inputs andoutputs mainly includes as follows: production method, intermediary method and subdivisionmethod, taking Cobb-Douglas cost function, transcend logarithm cost function andgeneralized transcend logarithm cost function as the principal cost function. In addition, thischapter detailed the calculation formulas of overall economies of scale and scope and specificoutputs economies of scale and scope.Chapter5empirically analyzes the economies of scale and scope mainly basis on thetheory study. Firstly, talking about the development history of famers' specializedco-operatives in Shanxi province and representing the current situation from the angle ofoperating mechanism etc. and expliciting the issues and external environment in thedevelopment of co-operatives in Shanxi province through doing SWOT analysis. Then,choosing44friut and vegetable co-operatives which have clear paper data from77friut and vegetable co-operatives as samples for the empirical research of economies of scale and scopeby the way of transcend logarithm cost function and generalized transcend logarithm costfunction.2million as a boundary, I divide44samples into two groups. Results shows that twogroups of co-ops have general economies of scale and scope, but product-specific economiesof scale (scope) is different. Conclusion is that the group (assets<200million yuan) shouldexpand its business scale, the second group (assets>200million yuan) has competitiverelatively and joint production among outputs which could save total cost of co-ops. The threesamples all have economies of scope, but the specialized scale and scope economy aredifferent.Chapter6considers expansion is inevitable as realizing economies of scale ofco-operatives, and there will emerge economies of scope in this process. The next, talkingabout the economies of scale and scope in expansion and proposing the expanding boundaryis not infinite, blind expansion would result to diseconomies of scale and waste of resourcesetc. phenomenon. Therefore, there should be an effective boundary in expansion.Finally, this chapter tries to empirically predict the effective boundary in the end.Conclusion is that the appropriate number of members of the first group is between68and100people, the appropriate number of members of the second group is between150and176people.Chapter7rises from the study of Shanxi province to the height of the development ofco-operatives in the national. Through seeing the description of the model data as the impactfactors of inspection the economies of scale influence degree for achieving scale economystrategy, the results is that expansion can achieve economies of scale and scope. Put forwardthe suggestion and strategy for realizing economies of scale and scope from the other threeaspects of constructing innovation system, supply of talent and supporting policies in allusionto the current situation of co-operatives in China.