The Study On The Market Performance Of Agricultural Industries In China

The Study on the Market Performance of Agricultural Industries in China, which is based on the theory of microeconomics, the theory of transacion cost and theory of industry organization, and which recurs to the SCP (Structure-Conduct-Performance) analysis frame of Harvard School, mainly deals with market structure, market conduct and market performance in China, which is trying its best to build new socialist rural area, and which is now in a new phrase of the industry's fostering agriculture. This task is very practical and it will be of theoretical meaning and practical meaning in improving the market performance of agricultural industries.This paper will fall into five parts: In the first part, the paper brings forward the question of the market performance of Chinese agricultural industries, makes some analysis of the research backgrounds and offers the fundamental ideas, the structure of the paper and the research methods. Beginning with an explicit definition of the market performance; the second part is a theoretical analysis of the market performance of Chinese agricultural industries, which focuses on theoretical foundation and the environment of system; the third part lists the factors which influence the market performance of Chinese agricultural industries, illustrates the mechanism of the forming of the market performance of Chinese agricultural industries and gives a claim that market structure and market conduct are the most important factors which influence the market performance of Chinese agricultural industries; in the forth part, this paper, from both the perspective of achievement and the perspective of potential, constructs an evaluating system of the market performance of Chinese agricultural industries and make an evaluation through a method of econometrics; the fifth part offers the policy tropism for enhancing the market performance of Chinese agricultural industry, which aims at constructing the market structure of the effective competition of the Chinese agricultural industries. The concepts are specific and explicit. This paper, according to Marx's differentiation theory of social work and also according to the formation and the development of industry, makes a definition for agricultural industry that agricultural industry is the aggregate of the production and marketing of farming, forestry, pasturage and fishery. From the perspective of market demand, the agricultural industries provide the market with products of farming, forestry, pasturage and fishery. The agricultural products have attributes in different ways, so the observation and research of the market performance of agricultural industry should include not only the economical performance but also theecological and social performance. This paper studies market structure, market conduct and market performance from the angle of view that agricultural industries offer merchandises for the market, so the market performance in this paper refers to the ultimately economical performance of the co-function of price, output, cost, profit, quality, variety and technological advancement, which is resulted from the market conducts of the market participants, or rather the operating outcome of the market of agricultural industries.The construction of the analysis frame of the market performance of Chinese agricultural industries is of stronger theoretical foundation and maneuverability. Microeconomics, which studies from the angle of social welfare and efficiency of distributing of resources, holds that a complete competitive market can realize Pareto Optimality and can assure that the assignments of resources are effective. The new system economy theory, which introduces theory of trading expenditure to study market performance, believes that effective designing and planning of systems can decrease the trading expenditure and enhance the efficiency of the assignments of resources. The theory of industry organization, which focuses on the relationship of market structure, market conduct and market performance, argues that there is a very close interacting relationship between this three. It is based on these three classic theories that this paper conducts an analysis frame of the market performance of Chinese agricultural industries, which is a reasonable link from the support of theories to the change of system to the formation of performance to the evaluation of performance and to the policy tropism.This paper points out that the Chinese market structure has the feature of excessive competition. An analysis of market structure factors which are much related to the market performance of Chinese agricultural industries shows that the market centrality, the variation of products, the entering and exiting rampart all jointly contribute a lot to the performance of agricultural industries. The traditional economy theories believe that the agricultural market structure is almost in complete competition, but actually agricultural industry market doesn't satisfy the qualifications of a market of complete competition. The current Chinese agricultural products are also the case. The Chinese agricultural industry market lacks centrality and the agricultural products have dual attributes at the same time which are resulted from variation of natural qualifications and market qualifications respectively. In China, the relatively lower industries are prone to enter the rampart while the relatively higher industries tend to exit from it. All these leads to the present situation that the production and marketing in agricultural industries is in a stateof decentralization and that the work force is somewhat excessive and always remaining in agricultural industries and that being excessively competitive in agricultural industry itself and the lower efficiency of assigning the resources are very obvious. Consequently, it is quite hard for the performance of the agricultural industries to have a quick improvement. In China, its market structure of agricultural industries being excessively competitive, the market price takers of agricultural products will include many such as agricultural enterprises, farms and farmers who tend to accept rural fair price, wholesale price and forward price based on supply and demand in market. Because the agricultural products' cycle is very long, the agricultural manufacturers' production decision-making of this cycle is often determined by the prices of last cycle, which inevitably make market price fluctuation of the Chinese agricultural products take on Cobweb model. This paper constructs an evaluating system of the market performance of Chinese agricultural industry and makes an evaluation of it through a method of econometrics. This paper, from both the perspective of achievement and the perspective of potential, constructs the practical achievement evaluating system and potential performance evaluating system. This paper, using a monomial means of evaluation and selecting the data of serial time, makes an evaluation of the market performance of agricultural industries from the perspectives of supply capacities of agricultural industries, the profit capacities of agricultural industries, the advancement of agricultural technology and the contribution to the national economy. By a synthesizing method, this paper, through a process of fixing on index according to the experts' questionnaires, constructing the model of synthesizing evaluation, choosing synchronic data of 20 sample countries, makes an evaluation of the market performance potential of Chinese agricultural industries from the perspectives of the agricultural production factors, the market demands of the agricultural products, the development of the related industries with agriculture, the supporting level of agriculture, the mechanization of farming and scale economy, and the system environment of the agricultural industries. Judging from the evaluation results, the market performance of Chinese agricultural industries is quite low and the supporting level of agriculture, the mechanization of farming and scale economy, and the development of the related industries with agriculture are the key factors which can restrict the market performance of agricultural industries.In order to construct a market structure of effective competition, this paper, from the three different perspectives of scale economy, symbiosis organization, and innovation of agricultural technology, provides the policy tropism for the purpose of enhancing themarket performance of agricultural industries. The concrete measures to be taken lie in accelerating the fluidity of constituents and the changing from household marketing to scale economy, fostering agricultural symbiosis organization and intensifying the organization of agricultural industries, and constructing a new system of innovation of agricultural technology and improving the contributing ratio of the advancement of agricultural technology.