Allocation & Optimization Of China's Agricultural Research Investment And International Competitiveness Of China's Agricultural Products

Although more agriculture products have chances to get into the international market after China's entering WTO, how can China's agriculture face the challenges? In general, compared with land-intensive, the labor-intensive agricultural products have a huge market share in certain condition. However, in recent years, because of the quality and safety reduction in labor-intensive agricultural products and higher production costs in main grain corps, the competitiveness has been weakened in the international market. Therefore, the way, which we can utilize to enhance the competitiveness, becomes the most important question within the "green box" policy framework and allowed by the WTO rules.It is a plausible and effective to increase the agricultural research investment so as to enhance the competitiveness of agricultural products in the international market. As one member of the developing countries, our government cannot provide with sufficient funds. Therefore, this paper is going to emphasize on the allocation & optimization of certain agricultural resources in order to make use of it more efficiently. On the basis of the introduction of agricultural investment and the competitiveness of agricultural products, it firstly studies the allocation of agricultural research investment among the five agricultural sectors. It is concluded that, the allocation situation cannot be in accordance with the development of the sectors and domestic and international market. Meanwhile, discordant allocation also exists in the periods during the agricultural production process and research styles, implying that it is in lack of science and technology.Another aspect goes to the allocation & optimization of agricultural investment resources in grain section. Having understood that there is enough room for the improvement of allocation & optimization, this part aims at the allocation & optimization of agricultural research investment in the six agricultural regions according to the marginal returns equalization. Furthermore, the research has tested the effects of region allocation & optimization to the production costs by virtue of the costs substitutions principle. It has obtained some preliminary results that the allocation & optimization of agricultural research investment can contribute to an increase in total grain output, and cause the production costs to reduce accordingly.Therefore, the government should strengthen the investment of agricultural research and shift the investment directions, thus improving the quality competitiveness of...