The Research On Development Of Agricultural Product Processing Industry In Henan Based On Input-Output Theory

Since the reform and opening-up for 30 years, agriculture in China with the theme increasing farmers' income and improving the benefit has achieved changes in the agricultural processing industry to a new stage. Certainly, situation of supply and demand of agricultural products in recent years have made great changes in Henan province, which is the largest agricultural province in China. On one hand, the supply of agricultural products from the previous stage into a chronic shortage of the relative surplus of agricultural products has led to the "difficulty in selling" phenomenon; on the other hand, the agricultural product processing industry basing on the food industry and composing of the agricultural, manufacturing, modern service industry has gradually become a strategic pillar industry to national economy so that to meet the "sunrise industry" of people's "safety, nutrition, convenience" consumer demand. So, vigorously develop the processing industry of agricultural products has become the leading agricultural development in Henan, which is also a breakthrough to promote the agricultural efficiency and farmers increase, therefore, it is truly of great importance with the direction of overall and strategic significance to economic development of Henan province.According to analysis on theory of the development of agricultural product processing industry and the input-output in China and abroad, we study thoroughly the economic relationship and the correlative effect between agricultural product processing industry and some other industries, and from this angle we find that the agricultural product processing industry can indirectly promote the economic development of Henan Province through the data of the input-output table of Henan Province. Our main conclusion in this paper includes: (1) In 1997-2007, agricultural product processing industry in Henan Province maintained sound development momentum, which plays an increasingly important role in Henan's economic, but it still lag behind comparing with the developed areas. (2) Agricultural product processing industry is a middle product sector, its contribution to the economy in Henan is quite strong that mainly depends on its consumption and the foreign demand. (3) The indirect links between agricultural product processing industry and other industrial sectors is much larger than the direct. It is also an endogenous style of development sectors. (4)The fluctuation on the price of product of agricultural product processing industry usually affects the agriculture that such an effect is quite limit. (5) The province of final demand, the net outflow of technology and production, and these three factors on the agricultural product processing industry has different degree of influence, and the impact may be also different at different time.The article's innovation mainly includes: (1) This article is mainly based on the perspective of input-output analysis, and focus on correlation effect and spread effect of agricultural product processing industry, and we also use it as an entry point for agricultural product processing industry in Henan Province to let the sector conduct in-depth empirical research.. (2) On analysis, basing on the basic content of input-output analysis and SDA model, we make a comprehensive and multi-angle analysis on input-output of agricultural product processing industry, which provides us better understanding of the sector development of agricultural products processing industry. (3) We use the latest input-output table in Henan, 2007, and our research mainly spans from 1997 to 2007, which is few referred in any other papers.