Study On The High Price Of Agricultural Products In Guizhou Province

Agricultural products are necessities to people’s life, it is not only closely related to people’s life, but also the source of national industrial and economic development. The price of agricultural products not only directly affect the residents living expenses, but also a problem related to the development of industry and economy benefit. The price of agricultural products has always been of concern, Guizhou Province agricultural product price is more remarkable. Guizhou province is located in the inland of China’s western region, the level of economic development lags behind, the per capita disposable income is low; but the prices of agricultural products is much higher than the national average level and the surrounding areas, and even catch up with in Beijing, Shanghai and other developed areas. Agricultural products price in Guizhou Province does not adapt the level of economic development, showing abnormal high state, namely "abnormal high price of agricultural products".Aiming at the problem of the abnormal high agricultural products price in Guizhou Province, this article has conducted the research from four aspects. First of all, according to the per capita disposable income and the price of agricultural products, this paper carrys out a comparative analysis of Guizhou province to neighboring provinces、the developed region and the national average level, demonstrates that the prices of agricultural products in Guizhou is extremely high in reality compared to other regions of the country. Secondly, this article illuminates the disadvantages of Guizhou agricultural products price to economic and social development, points out the importance to solve the problem.Then, based on the market structure theory, It analyzes the reasons of abnormal high agricultural products price in Guizhou. Guizhou agricultural products market is small and scattered、 isolated and closed. There’re high barriers to entry, and the difference is small, It can be seen as similar to monopoly market of agricultural products.According to the" SCP"paradigm of market structure theory:S (Structure)market structure——C (Conduct)market conduct——P (Performance) market performance, Guizhou agricultural products market is almost complete monopoly structure. The specific performance are production monopoly、circulation monopoly and management monopoly. The market structure affects market conduct, production monopoly makes the production cost high, circulation monopoly results in high cost of distribution, management monopoly increases management cost, the middle transaction cost of Guizhou agricultural products market is high in the approximation monopoly agricultural products market structure.The market conduct affect market performance.The price of agricultural products is natural high because of high market transaction cost.Market structure determines the market conduct. It is a game process between supply and demand. Market conduct determines the market performance.It is the game result of supply and demand——the price of agricultural products. Approximate monopoly market structure of Guizhou agricultural products determines the game of supply and demand:poor supply, demand increases, the market of agricultural products in short supply situation is obvious. According to the laws of supply and demand,the price decline with low product demand and high supply, the price rises with low product supply and high demand. The market structure of agricultural products in Guizhou province determines the situation that agricultural product supply is less than demand,this situation result in abnormal high prices. Finally, It puts forward some suggestions related to the problem of agricultural products price in Guizhou.Based on the theory of economics, This paper mainly used empirical analysis method,combined with a small amount of normative analysis method,and using the method of quantitative analysis and qualitative analysis.This paper argues that the prices of agricultural products is determined by the relationship between supply and demand when the relationship between supply and demand is determined by the approximation monopoly agricultural products market structure.So the abnormal high price of agricultural products in Guizhou is the result of approximation monopoly agricultural products market structures. The biggest innovation in this paper is analysis of agricultural products price formation with market structure theory.The special agricultural products market structure in Guizhou province produces the game of supply and demand——demand exceeds supply, this situation determines the result of game——the abnormal high agricultural products price.