A Study On Change And Governance For Exporting Organization For Agricultural Products In China Based On ESCP Framework

The increasing speed of export of agricultural products began to decline in China recently. Especially, export of some agricultural products with relative advantages change for the worse and even shrink, after rapid increase for certain period, so that foreign trade of agricultural products end its proud history of favourable balance for 20 years. Based on profound analysis, backward exporting organization for agricultural products is the root reason, which holds back cost advantage from turning into market advantage. The research aims at structure of exporting organization for agricultural products, which dwells on the institutional environment, regulation structure, behavior of subjects and the according performance of different kinds of organizational forms which led different history period respectively. The systematic analysis makes use of the evolution course of organizational forms of agricultural products exporting since 1949. This dissertation tries to give answer to how to foster exporting organization for agricultural products by virtue of the theoretical research on evolutional rules of exporting organization of agricultural products.Firstly, the dissertation takes advantage of the fruit concerned of SCP framework of traditional industrial organization and analysis methods of neo-institution economics and develops ESCP framework for analyzing exporting organization for agricultural products by applying theories and methods of industrial organization theories, neo-institution economics, game theory and international trade subject. Compared with traditional SCP framework used widely in industrial organization theory, ESCP framework in this dissertation extends SCP framework, which adds institutional environment analysis (E), enforces new contents to structure(S), behavior(B) and performance(P). And in the concrete analysis, such neo-institutional analysis methods as transaction cost, property rights and trust-agent theory etc., so that an overall theoretical framework which applies institutional economics into analyzing vertical structure of exporting organization for agricultural products is built. Before concrete analysis, the dissertation reviews and summaries the evolution course of exporting organizational forms for agricultural products in China since 1949 and presents a basic judgment that the exporting organizational form for agricultural products nowadays is still primary. To facilitate the systematic analysis, the research divides the whole evolution course into for period, that is, Period when nation regulated the exporting thoroughly, Period when special foreign trade company lead the exporting, Period when processing company and special foreign trade company lead commonly and Period when producing organization lead. And the dissertation analysis the organizational forms in different periods respectively. This part gives foundation of the following analysis guided by ESCP framework for kinds of organizational forms which leads the whole exporting of agricultural products in China.Then the dissertation dwells on applying ESCP framework into analyzing the exporting organizational forms which led the whole export of agricultural products in different periods. Firstly in the Period when nation regulate the exporting thoroughly, administrative orders leading form is almost the only form for exporting agricultural products in China. In this part the research applies ESCP framework into analyzing this form and exposes that it is the certain institutional environment where administrative order controlled the society, technology level is quite low, supply couldn't satisfied demand by far in market at home and supply is comparatively surplus in international market, that decided the according organizational forms where the contract relation between government and micro-subjects is enforcing, the micro-subjects had no right to do decision-making and had to acted by administrative orders of government. In this form, special foreign trade company is the core loop to implementing export. The research built up utility function and then penetrated into its behavior. At the same time, the part of performance analysis, this form could try to take out some agricultural products to export under the condition of quite limit supply and realized national aim of gaining foreign exchange with low cost. However, this kind of organizational form could not adapt to the alteration of demand on the international market and limited the increase of export of agricultural products. Further more, by mean of this administrative organizational form, the comparative advantage of agricultural products was lifted artificially by shrinking the purchasing price of primary goods on purpose, which finally exaggerated the trade condition of agricultural products.Secondly, in the Period when special foreign trade company lead the exporting, special foreign trade company gradually lead the exporting for agricultural products in China by virtue of taking advantage of abundant channels in international market. And the form where special foreign trade company leads is the main form during this period of history. In this part ESCP framework is also applied into from beginning to end. The institutional environment in which this organizational form stayed was show as mid-level administrative intervene, mid-level technology, supply-equal-to-demand market station at home and supply-overlapping-demand market station in the international market. The relation between nation and special foreign trade company belonged to port ional contract. Special foreign trade company was inspired highly and producer of primary goods was inspired lowly. As a result the regulation structure in this organizational form is not stable.The research built up theoretical models to dissect the behaviors of special foreign trade in the portional contract and the course of searching for supply of goods and course of negotiation. And the performance analysis on the base of supply and demand function shows that the quality of source of goods lacked guarantee caused demand in the international market to decrease and trade condition to exaggerate.Thirdly since the aim of building up market economy system with essence of socialism was presented in the 14th Conference of the Communist Party of PRC in 1992, special trade company began to decline and the processing company oriented to export gradually rose and grew into dragon-head agricultural company oriented to export by vertical integration which connects all the loops concerned and shows as integration including trade, processing and producing or integration including farming, breeding and processing.ESCP framework is applied into this part from beginning to end as well. The institutional environment in which this organizational form stays was show as low-level administrative intervene, high-level technology, international marked with hot competition. In such environment, economic system is more stable and market is more free. However in the international market, competition is fiercer in an open way. For export loop is internalized, transaction arrangement shrinks but transaction gets more difficult, all the subjects concerned behavior with contract relation of enjoying benefit and undertaking risk commonly. In this part, the dissertation analyzing the behaviors of exporting dragon company and farmers by mathematics model and the alteration of trade condition by supply-demand model.Finally, the research goes on with contrast static analysis based on analysis of exporting organizational forms in three history periods in the ESCP framework. On the ground of the original analysis, the dissertation exposes the internal laws of revolution of exporting organization for agricultural products and presents some suggestions to how to improve the development of exporting forms for agricultural products in China.