Analyse Of Circulation Cost Of Maize In Jilin Provence

After joining WTO, the large-scale agricultural products of our country -- maize is facing opportunities and the challenges, Jilin Province is the most important maize production and output province in China. The international competitive power of Jilin maize may represent the power of Chinese maize in international market in certain degree. Commodity competitive power not only includes the quality competitive power, but also includes the price competitive power. The historical data indicated, since 1997, the price competitive advantage of Jilin Province maize lost gradually, there are two reasons: production cost and circulation cost. This article carries on the analysis from the circulation cost.Through carrying on investigation to the Jilin Province maize circulation cost and analysis to its structure, we discover the Jilin Province maize circulation cost constitutes mainly by four parts: the artificial cost, the grain bin cost, the drying cost and the railroad transport expense, the sum of those four parts occupies 71% of the whole circulation cost. And then we analyze the reason why each cost exists, seek the main effect factors which has made circulation cost the Jilin Province maize staying at a high level: (1) In maize circulation, there are a large of supernumerary in state-owned grain enterprise which oceupies the monopoly status in market. (2) Generally, there is few manageable quantity of maize in state-owned grain enterprise. (3) The current situation is that maize contents high moisture in Jilin Province. (4) The storage technology of maize in Jilin Province state-owned grain enterprise is backward, moreover managers of those enterprises lack the enthusiasm to innovate and promote new technologies. (5) Railroad department's monopoly management. Then, how these affect factors has formed, and what type influence has?Chapter four of this article exactly answers those questions in terms of analysis of institutional economics. The analysis starts with admitting the transaction expenses generally exist, G.Stigler thought the transaction expense just like the friction force in nature, pointed out the transaction expense is a kind of waste of public wealth and resources. The reduction of the transaction expense means the improvement of social efficiency, the different arrangements of property right are to minimize the trade expenses. The grain circulation market of China is a multi-layer circulation market formed by grain producers, grain enterprises and grain consumers, in order to analyze simply and conveniently, this article willsimplify multi-layer to double-layer: grain producers— grain enterprises — grain consumers. Chinese peasant households' management mode is based on small-scale and decentralized management, the market operation ability of peasant is very weak, so, the grain purchasing market in China is buyer's market and the expenses of transaction pay by sellers. In this situation, peasant households prefer to choose grain peddlers to sell their grain in order to avoid paying the high transaction expenses that is the result of the monopoly management of state-owned grain enterprise. But the existence of grain peddlers cannot reduce the transaction expense of the whole society. Breaking the monopoly of the management right of purchasing grain enterprises, the key is to permit many kinds of grain management bodies enter the grain purchasing market.Breaking the monopoly of management right of purchasing grain enterprise must reform the link part in grain double-layer market. Understanding through the analysis of chapter three: there are many problems in state- owned grain enterprise, such as supernumerary, unreasonable purchasing, lacking innovative enthusiasm of operators and getting flexible question of enterprise management. Those problems caused low efficiency of the enterprise in course of grain circulation. In chapter four, utilizing the property right theory of institutional economics to analyze why business efficiency of state-owned grain enterprises is low, why existing property right system of state-owned grain enterprise cannot offer people more encouragement to internalize exterior, namely exterior nature of property right of state-owned grain enterprise. Thus, we find the main root of the exterior nature of property right in state-owned grain enterprise is that the rights, the responsibilities and the benefits boundary in enterprise are extremely fuzzy. The property rights of state-owned grain enterprises belong to all Chinese people, however, because the public owned property right is inalienable, there is no one really own the state-owned grain enterprise. Nobody enjoys the owner's right, nobody comes to bear responsibility and obligation, and nobody cares about the efficiency of enterprises. This has caused the high circulation cost in state-owned grain enterprise.In Chinese grain double-layer circulation market, the maize circulation cost happen in grain enterprises ~ maize consumers layer is shown as the transport expense mainly. The basic reason of high transport expense is the monopoly management of railroad department, chapter four of this article analyzed it from two following angles: (1) carries on the analysis from the monopoly efficiency angle. On terms of the license of totally monopolized of government, the railroad department can provide few services, and require higher marketprice for its services. (2) Carries on the analysis from monopoly department internal efficiency angle. Since no competitor in selling market, generally speaking, the interior management efficiency of railroad department is low, and the cost of operation is high, moreover there is no need to reduce the cost.Through analyzing the structure of maize circulation cost of Jilin Province, we find the constitutions of maize circulation cost and the main effect factors, then analyze why those influence factors can exist by the method of institutional economics, and draw the conclusion in the fifth chapter: high circulation cost of maize in Jilin Province is a result which made many kinds of factors affects together, but the basic reason is the unreasonable arrangement of institution, therefore, the reduction of the maize circulation cost has to obtain the reform of the grain circulation system, joint efforts from the grain macroeconomic regulation and the control of the microscopic movement mechanism two aspects to move grain circulation towards the benign marketability track, reduce the transaction expense in circulation produced by policy, seek the way to reduce the maize circulation cost in Jilin Province.