Study On The Supply Boundary Of Agricultural Extension Services Between The Government And The Market

This study provides a basic framework for analyzing the boundaries between the government and market on the supply of agricultural extension services from the perspective of new institutional economics. On this basis, the transaction attribute of the supply of agricultural extension services is analyzed, and the concept and composition of the transaction costs of agricultural extension services are defined. The factors that affect transaction costs and the resulting problem of transaction governance structure choice are also involved. Then, combined with the evolution process of the supply system for domestic and international agricultural extension services, government boundary and market boundaries for the supply of agricultural extension services are analyzed.Due to the public goods properties of agricultural extension services, most countries of the world established public agricultural extension service system by the government investment. However, since the1980s, public agricultural technology extension system has been questioned for its inefficient and lack of service targets, and gradually took the way of diversification. China's agricultural technology extension system experienced a series of reforms since the wide implementation of household contract responsibility system which took place in1980s, and gradually develops a government-led diversification of agricultural extension services system. This extension system has made important contributions in various periods to promote the grain output, agricultural efficiency and farmers'income, as well as ensuring the national food security and the effective supply of main agricultural products. However, due to the long standing function confusion between the non-profit extension and profit-making extension of public agricultural technology extension system, the public good characteristics of the extension services fade gradually, while the profit characteristics has become increasingly evident. This trend does not meet the basic requirements of public welfare of the agricultural extension services, and it squeezes the space of market-oriented agricultural extension services as well. Therefore, the division of the scope of government and the market in agricultural extension services has become quite necessary. This study analyzed the transaction characteristics of the agricultural extension services and the structure of transaction costs on the basis the theory of transaction costs, and then discussed the changes of China and some other representative countries'national agricultural technology extension service delivery system, and obtained an analytical framework based on transaction cost theory. This study includes the following aspects:(1) The transaction attribute of the services and how it influences he transaction characteristics and transaction costs of agricultural extension service.Analysis of the essential attribute of clear agricultural extension services, to clarify the trading characteristics of the agricultural extension services, and on this basis to define the transaction costs of agricultural extension services, analysis of the governance structure of the transaction characteristics of the agricultural extension services, and transaction costs of influencing factors.(2) The establishment of the research framework about the supply boundary between the government and market on the basis of the transaction cost theory and the delineation of the border.Down the route of transaction characteristics→transaction costs→Contract→boundary to determine the technical route, and build the framework of government and the market boundary of the supply of agricultural extension services, and the use of the analytical framework into account the actual conditions on the boundary of the government and the market divided along the trading characteristics. Then validate the research framework.combined with the design of developed countries' agricultural technology system.(3) dynamic changes in the governance structure of agricultural extension services transactions and its influencing factors.(4) evaluation of China's agricultural extension services supply system. Through the analysis of the history and current situation of China's agricultural extension service delivery system changes, combined with the analytical framework and some cases of the government and the market boundaries, to make evaluation of the pros and cons of the existing institutional arrangements, and find the entry point of the system improved.(5) Based on the government and the market boundaries by agricultural extension services supply system policy recommendations. Summarized the research findings, and make suggestions for improvement on the supply system of agricultural extension services according to the system evaluation conclusion.This study proposes the following policy recommendations:(1) The non-governmental agencies promote the supply of agricultural products, government promotion agency specializing in the supply of agricultural technical servicesBased on transaction characteristics, agriculture products better through the market mechanism to trade, the government can withdraw from the field, specializing in the supply of agricultural technical services. In addition, the transaction duration is short, agricultural technical services income spillover of the transaction is not obvious by the market-oriented agricultural technology promotion agencies responsible for promoting. Agricultural technical services because of high asset specificity, uncertainty and lower transaction frequency should primarily be borne by the Government is responsible. In the supply system of agricultural extension services in the future, should be fully stripped the supply functions of the public agricultural extension department of agriculture products to make it market-oriented development.(2) The degree of specialization of the government agricultural extension services need to be improvedTo improve the degree of specialization of the agency functions on the one hand, and stripped the other functions outside of the extension services, to ensure that the grass-roots agricultural technology extension services to dedicate themselves to promote the work. The other hand, to improve the degree of specialization of the extension workers, to adjust the promotion of staff remuneration system to improve the wages and living conditions of the agricultural extension workers, and arouse their enthusiasm for work, to encourage agricultural extension workers to strengthen the business to learn, and constantly enrich and update their professional knowledge, and strengthen the promotion of skills, explore new ways of promotion, to improve the efficiency of farmer-oriented dissemination of agricultural knowledge and information in order to improve the situation of information asymmetry between the agricultural technology promotion agencies and farmers.(3) Improve the degree of the scale of agricultural productionFuture development should focus on the role of cooperatives in the agricultural technology promotion mechanisms, to develop appropriate support policies to encourage cooperatives to participate in agricultural extension, cooperatives led or participated in comprehensive agricultural development projects in the investment in technology to give more financial subsidies or financial support. Encourage cooperatives to become bigger and stronger, and members of scale, fund size, production scale, and technical strength and improve, and strengthen their ability to participate in market transactions. Encourage the parties to form cooperatives and joint ventures, universities, research institutions or other organizations, based on the common interests of all parties to a legally binding contract for the protection of the joint development of complementary advantages, benefit-sharing, risk-sharing technology innovation Cooperation Organization, to accelerate the innovation and promotion of agricultural science and technology.(4) Strengthen the legal constructionFirst, revising the People's Republic of China promulgated in1993, Agricultural Technology Promotion Act, the legal form of a clear government agricultural agencies to promote the public welfare functions, and market-based agricultural technology promotion agencies, the establishment and operation of the specification; further improve the farmers'professional cooperative law.(5) Cultivate professional farmersThe new professional farmers should be the application of advanced agricultural technology, agricultural production, investors and business decision-makers in agriculture, agricultural production, markets and natural risk bearers. All levels of government should be to train new farmers into the work schedule, select high quality, the ability of new farmers to take effective measures to mobilize the enthusiasm of all sectors of society, to play the role of the existing types of training resources, the establishment of the Government to assist market-oriented, The farmers of diversity in school education and training system, to develop a number of outstanding full-time new professional farmers engaged in agricultural production. The new professional farmers in science literacy, the ability to work, the sense of innovation should be better than the traditional farmers, and this undoubtedly has an important role in the promotion of advanced agricultural technology popularized.(6) To strengthen the role of research and education institutions in the agricultural extension servicesResearch and education institutions as an innovator and provider of agricultural technology knowledge, you can give full play to the advantage of the channels of information and expertise, to provide agricultural information and agricultural services to farmers. This is to save the information in the transaction costs can also reduce the duplication of investment in dedicated assets in the agricultural extension services project. In addition, agricultural research and education institutions, government investment in public agricultural research completed to deal with the public scientific research in their hands to be shared, for agricultural enterprises to reduce the cost of the acquisition of technical information, so that more funds for the application of the results of R&D special type of quasi-rent formation and protection of the agricultural product support services provided free of charge.This study applied the theory of transaction costs, incomplete contract theory and institutional change theory to study the government and the market boundary of the supply of agricultural extension services, the innovation embodied in the following areas:The first is the innovation of the research perspective. In this study, the concept of transaction costs the introduction of agricultural technology to promote the non-market transactions, the public service, to expand the scope of application of transaction cost economics framework for understanding the establishment and changes in public agricultural technology promotion system provides a new research perspective.The second innovation of the research. This study is based on transaction cost theory and institutional change theory and incomplete contract theory, institutional arrangements for the supply of agricultural extension services were discussed from two aspects of the institutional environment and governance mechanism, expanding the theoretical framework of the agricultural technology promotion system for the study.The third is a research point of view of innovation. This study has redefined the essential attribute of the agricultural extension services, and pointed out that the agricultural extension services is actually a combination of the two agricultural technology products trading and agricultural technology services, and performance on the basis of this essential attribute of the attributes of public goods. Institutional Change of the agricultural extension services should be to reduce the transaction costs of agricultural extension services as the goal.