The Study On The Competitiveness Of Agricultural Products Processing Industry In Shanxi Province

Agricultural products processing associates with agriculture and industry.It can be said agriculture products processing is the extension of the agriculture. On the other hand it connects urban and rural residents through final consumption. Agro-industrial development is not only an important link between the farming and the food, but also promotes the development of the agricultural industry and rural urbanization. Therefore, agricultural product processing industry is a major issue to solve the "three rural" issue which relates to people's livelihood.Our country is a large agricultural nation and Shanxi province is a big agricultural province. There are advantages of raw material and human resources in developing agricultural processing industry. After years of development, a batch of competitive industries and brand products have been formed and have competitive advantages in international competition. Compared with developed countries and some developed regions in China,there is still a great gap for Shanxi on overall ability,scale,skill and competitive power. Huge comparative advantages have not been transferred into effective competitive advantages.Therefore, this paper begins from the overall development level, structure and performance of the industry, analyzes advantages and disadvantages of developing processing industry of agricultural products, internal and external problems in the development, presents proposals for promoting competitiveness of processing industry of agricultural product in Shanxi in view of domestic and foreign experiences.Based on the absolute advantage theory, comparative advantage theory, factor endowments theory, and competitive advantage theory, the paper sets up relative indicators and establishes a model for evaluating industrial competitiveness along with thinking about characteristics of the development of agricultural product processing in Shanxi province. In addition, the paper makes an empirical analysis of agricultural products processing industry by the factorial analysis, and presents a series of strategic measures according to the evaluation result.