Comparison And Analysis On Competitiveness Of Agricultural Products Between Fujian And Taiwan

Fujian has close and deep relations with Taiwan. As the two sides have the same culture, origin and also the same agricultural natural environment, agricultural cooperative basis is fairly good. With areas and regions of cooperation expanding, technical level increasing, agricultural exchange and cooperation between two sides have achieved remarkable results. Among them, how the competitiveness of agricultural products between Fujian and Taiwan are and which has export competitiveness aroused widespread public concern. Meanwhile, in dealing with the impact of WTO on agriculture and developing export-oriented agriculture, competition caused by similar varieties of products and export areas aroused public concern. Therefore, a detailed analysis of competitiveness of agricultural products and the respective competitive advantage, has undoubtedly important theoretical value and practical significance in transforming competition to complementarity and interdependence, and raising the level of agricultural cooperation between Fujian and Taiwan.This essay mainly concerns on the comparison and analysis on competitiveness of agricultural products between Fujian and Taiwan. First, international competitiveness of whole country, enterprises and domestic industries or products between two sides were summed up; Then, on the basis of classification and analysis of substantive trade data, the author used three index & indices to comparatively analyze the overall competitiveness and their respective competitive advantage of agricultural products between two sides. These index & indices are Market Share, Normalized Trade Balance and Revealed Comparative Advantage Index. It revealed that the two sides were more complementary, despite the existence of competition. It helped to improve competitiveness of agricultural products when strengthening cooperation between the two sides, and some suggestions were proposed:(1) strengthen the effort to recruit direct investment;(2)select cooperative industries and patterns reasonably;(3)strengthen their agricultural associations' connection and cooperation;(4)strengthen connection and cooperation on scientific and technological exchanges between two sides;(5)adopt multi-market and product diversification strategy to explore international markets.The result indicates that the market share of Taiwan's agricultural products on the international market is higher than Fujian, but Fujian agricultural exports are potential for growth while Taiwan has shown a downward trend .Taiwan spares no effort to develop emerging industries and delicate agriculture, both focusing on the central task of high and new technology. In the process of modernization, Taiwan accumulates abundant modern factors of production, such as capital, technology, market experience and marketing network. Subjected to resources and environment, Taiwan lacks comparative advantage on its agricultural products, most of which are tending to decline , and the trend is continuing. Benefits from land and labor, Fujian shows strong comparative advantage on labor-intensive products, but lacking for modern factors of production. Similar natural conditions create mutual cropping system and industrial structure, so it shows similarity and competition on export variety and market inevitably. However, the difference of basic factors of agricultural production, diversity of products and agricultural scientific and technological resources make the agricultural products complementary. In order to jointly enhance the international competitiveness of agricultural products, both sides should strength cooperation and achieve the integration of production factors, in the spirit of "win-win" and "agriculture outlook" principle.