EMPIRICAL STUDY On HARMONIOUS DEVELOPMENT Of ARGRICULTURE And AGROINDUSTRY

Recently the supplies of agri-product has become relative excessive and the agro-industry has been considered as a channel to digest the excessive agri-products. Using data from the six input-output, this paper investigates the industry interdependence between agriculture and agro- industry. The analysis suggests that 54.4 percent agri-products was processed in agriculture and agro-industry in 1995, with an increase of only 1.9 percentage points from 1981. The main reason was the rapid drop of the agri-product input coefficients of agro- industry, which was only 0.16 in 1995 while 0.4 in 1981. The industry interdependence between agriculture and agro-industry tends to be weakened, which will reduce the policy effect that means to digest excessive agri-products. This paper also explores the factors that may prevent the deepening of the industry interdependence between agriculture and agro-industry and presents some policy.