The Study Of Development Of Agricultural Exports Trade In Shandong Province Under Financial Crisis

With the process of economic globalization, China, a huge agricultural country, joined the WTO in 2001, and its own process of agricultural internationalization has been accelerated. Shandong is a big agricultural province in China, and its export on agricultural products plays a great role in the whole export market. Its export agricultural products trade volume rank first across the country for consecutive 10 years. While agricultural products trade grows steadily, an overwhelming international financial crisis which originated in America hit china's export market largely. Shandong as a leader on exporting agricultural products witnesses this kind of great impact by the financial crisis. This paper is based on the context of this financial crisis, using the method of qualitative and quantitative analysis, normative and empirical analysis to study the status of Shandong's agricultural exports and the relation between the agricultural products exports and the regional economic growth and employment. This article is based on the evolvement of classical trade theory and the new classical trade theory and also the theory on superprotectionism. With a big amount of diagrams and graphs, the paper aim to analyze the influential factors of the agricultural exports. Based on the study above, it presents the future development direction suggestion and strategies on Shandong's agricultural exports. So there are some conclusions about this article.First, the amazing achievements of Shandong's agricultural exports are closely related to its unique advantages and superior conditions. The excellent natural geographical environment helps a lot for the development of Shandong's agriculture, the cheap factors-cost and the fine infrastructure give huge comparative advantage to Shandong's agricultural export trade. Then, in recent years, there are great achievements on Shandong's agricultural export trade, the export trade volume has undergone a steady growth, while, on October 2008, agricultural export have been declined because of this financial crisis. However, there are some rigid demands on agriculture products in developed countries, so, compared with other kinds of export products, we find that the contract on agricultural exports was not that serious. During the year 2009, the V-rebounding momentum of agricultural export is very obvious. Meanwhile, different ownership agricultural exporting enterprise behaves differently during the crisis. The private agricultural exporting enterprises have reversed the market trend and their agricultural export volume was increased. Foreign enterprises were just-so-so during the ?crisis, but the state-owned and collective enterprises were great affected by this financial crisis, a sharp decline was seen in agricultural exports. Thirdly, in times of financial crisis, Japan, the United States, South Korea and other major trading partners face the domestic pressure of agricultural producers, so they all have taken subsidies, anti-dumping and other protective measures, global trade protectionism has begun to rise. But these will not change the comparative advantage of Shandong's agricultural products. After the crisis, we are still optimistic about the prospects for agricultural exports, Shandong's agricultural comparative advantage will be further revealed. But because of the Engel's law and the constraints on agricultural market, the future growth of Shandong's agricultural exports may slow down. Finally, the crisis challenged China's old economic development model which is over-reliance on the export. In response to the crisis, the paper proposes a diversified agricultural market development strategy. We need not only to maintain the international market share but also expand our domestic agricultural market. Meanwhile the Government should make some kind of reform to create a more excellent domestic market environment, to achieve a balanced pluralistic and stable development on Shandong's agricultural trade.Closely connected with current situation of the financial crisis, this paper make a deep analysis of the influence on demand for agricultural products of Shandong's major trading partners, and tried to elaborate the challenges and difficulties for Shandong's agricultural exports products. However, due to the timeliness of the financial crisis, my limited knowledge and poor research methods, this paper has weaknesses and deficiencies on researching what extent, depth and affect for the financial crisis influence the agricultural exports as well as trade protectionism and the impact on exports of agricultural products in Shandong both data acquisition. These will require further study in the future by doing continuous improvement perfection and supplement.