A Study On Market Integration Of Agricultural Products In China

China is the agricultural country and the agriculture is the base of the economydevelopment. So the level of agriculture marketability directly restricts that of Chineseeconomy. Market is widely being concerned by many countries， especially during the periodof economic transition in China. Since china carried out the reform and opening up，agricultural market has taken a series of reform in our country to promote our agriculturalmarket development and perfection. During these empirical study， the researchers have notyet researched agreement on the research on Chinese agricultural market integration andtendency. And these conclusions lower the reliability and reference value in the research， soit is necessary to review and reflection those existing research method and to analyze thisquestion wholly and deeply.On the base of related literatures at home and abroad, this paper combines the theory andempirical research, and deeply analyses domestic agricultural products market integration onthe base of market data of the corn and soybeans. From the theory research, the author combsthe empirical ways of agricultural products market integration at home and abroad anddetailed analysis the advantages and disadvantages of these ways, then constructs theempirical analysis method on the base of One Price Law. From the empirical research, theauthor analyses descriptively the price of the corn and soybeans, trade flow and circulationcosts, and exams and understands agricultural products market structure and trade structurewith co-integration analysis and causal relationship. Then the author measures agriculturalproducts market operating efficiency with Regime Switching model and nonparametricmethod, and offers some suggestions to promote agricultural products market reform. Thoughthe analysis of domestic agricultural products market integration, on the one hand, the authorexams the research on the level of current our market integration, on the other hand, theauthor builds Regime Switching model of domestic market integration with different methodsfor reference of the pros and cons to breakthrough defects of co-integration analysis. And thispaper also measures the effect of our agricultural products market reform.Based on the above research, the major researches in this paper are listed as follows:1. Since china carried out the reform and opening up, the reform of agricultural marketintegration has been accelerated gradually and has taken effective. Now，the level of ouragricultural market integration is high， and this shows that market mechanism has played afundamental role in our agricultural market. And there are large differences among species onmarket integration level, that is, the overall level of Corn market integration significantly higher than the soybean.2. Dominant market integration regime of domestic agricultural products market ismultiple factors that work together and include the Freight Subsidies, Minimum GrainPurchase Prices, Temporary Reserves Policy, import and export policies and etc, FreightSubsidy policy is enhanced level of integration between markets.3. The situation of "the carry austral boreal grain” appears in China agricultural productsmarket, presents a double oriented transmission pathway of supply and demand. Thecharacteristic of demand-oriented price transmission of soybean and corn is presentedobviously In Harbin the market as the center of the main market portfolio.and the supply-oriented price transmission perform noticeably well around Jiangxi province, Hunan provinceas the center of market portfolio.