Comparative Analysis And Policies Selection For Nursing The Agriculture By The Industry From The Angle Of Transaction Cost

This paper has firstly summarized the general theories on nursing the agriculture and discussed the explanation power ,the measurement and the significance of transaction cost. In view of the analysis of transaction of Commons and other economics, the author has considered transaction cost macroscopically and microscopically. On the one hand the macro-transaction cost are classified into market transaction cost, governance transaction cost, political transaction cost and merit-culture transaction cost, and the author has contrasted the transaction cost between agriculture and industry. On the other hand the author has contrasted microscopically the transaction cost of production, living, the labor force shifts, the innovations and the appliance of technology between the rural and the city. Through an experiential and a positive analysis, the author has pointed out that nursing the agriculture is the double-win choice of reducing the transaction cost of agriculture and industry.Nursing the agriculture is a universal practice internationally. This paper have contrasted the practices of reducing the transaction cost of agriculture and summarized the general experiences among some developed countries and districts. Under the principal of making foreign things serve China and the status in quo of large gap between agriculture and industry, the following advices should be practiced: re-recognizing the meaning of nursing the agriculture; constructing formal institutions for promising the predicable benefits; utilizing the adjustment and disposition function of public finance policies ;establishing the organization to improving agriculture, farmer ,rural; accelerating the construction of compositive system of agriculture information; consummating the mechanism of innovation and appliance of agriculture technology and constructing morals and cultural system during nursing the agriculture.