| In April2003, Fujian Province comprehensively launched a reform of collective forest ownership regime (the reform), as the supporting measure for the reform, Forestry Cooperative Organization(FCO) engages in forestry production, forest products processing and distribution on the basis of household contract management. FCO is a forestry operation system innovation that changes the pattern of forestry development and effectively establishes a bridge between the majority of farmers and the market, playing an important role in rural economic and social community.Based on the background above, this paper studies the development of FCO in Youxi country, Fujian Province, which aims to first get to understand the development, operation mechanism, role and status of FCO in Youxi and second make cause analysis against the current development problems of FCO so as to explore then propose appropriate policy recommendations to promote FCO’s development.This paper uses a combination of research methodology of normative analysis and empirical analysis. First, this paper introduces cooperatives theory, transaction cost theory, the theory of economies of scale and clever pig game theory, all of which lay the theoretical foundation for the study of FCO; Second, it has an overview of FCO’s development history, status and operational condition in Youxi, then makes a logister. |