Study On Development Of Agribusiness In Nanjing

For its important role in rural economic development, Agri-business must be encouraged to grow up for facing acute market competition after entering into the WTO in China. Promoting technology innovation in these enterprises is an efficient way to realize intensive farm management, and even to increase market share.This paper studies the function of technology progress on agri-business development in Nanjing. First, the history and evolution of agribusiness in Nanjing were overviewed. And the experiences of agribusiness development both in China and aboard were examined. Those experiences show that the agri-business must fit in with the development stage of rural economy. However, the size of agribusiness is still small, and product quality needed to be improved, especially that the enterprises in Nanjing seem to lack of innovation ability. The frontier production function was employed to analyze factor contribution to agribusiness growth. The result shows that a large part of share in agribusiness growth from 1999 to 2001, about 64.5%, was contributed by means of increasing input and about 35.5% by the improvement of technology efficiency, which is due to the enhancement on management led by severe market competition, while no contribution was made to the growth by so called narrow sense of technology progress.Based on the above analysis, some conclusions could be drawn: 1) to enhance the strength of support agribusiness; 2) to create proper external circumstances and reputable market order; and 3) to promote technology innovation in agribusiness.