The Development Of Farmer Cooperatives In The New Institutional Economics Perspective

Since the promulgation and implementation of the "Farmer Cooperatives Law in thePeople’s Republic of China" in2007, farmer cooperatives presents the trend of rapiddevelopment, some places had introduced the relevant rules and regulations in order tofurther promote the development of farmer cooperatives. The development of farmercooperatives play a role in increasing the income of farmers, improving the degree oforganization of farmers, reducing the risk of farmers to enter the market transactions, andpromoting the prosperity and developing rural economic and social ecology. As a new thingsin the development of rural economics, there is the definition of property rights are not clearenough, institutional building is not have a system construction, it was controlled by a smallnumber of people, and it also has higher transaction costs with the associator and otherissues.To further explore the development of farmer cooperatives in the new situation, so as tosolved some of the problems. This paper tried discussing from the perspective of the newinstitutional economics, and used property rights theory, transaction cost theory, and theprincipal-agent theory as the basis of the theoretical analysis, through the investigation ofsix farmer cooperatives of three townships in Hejing County in Xinjiang, and by Boarddiscussion from the Agricultural Economics Bureau of Hejing County. It was based on theconstructed theoretical analysis framework and verified the feasibility and practicality inorder to given a theoretical and empirical persuasive explanation.This paper started from the current development of farmer cooperatives, used propertyrights theory, transaction costs, and the principal-agent theory as the theoretical support, andstudied in the investigation of the farmer cooperatives in Xinjiang Hejing County. First,defined the idea of "common property" and "private property rights" of farmer cooperativesand built the analysis framework of property rights in the present study; Second, build a savetransaction cost analysis model, and studied Xinjiang Hejing County farmer cooperatives inempirical research; third, analyzed the existing principal-agent problem, and proposed somesuggestions against the problem in the Hejing County farmer cooperatives; fourth, based onthe framework of the theoretical analysis of the first few chapters has built, verified on the Acultivation of agricultural science and technology professional cooperatives in Hejing County.Finally,summarized the theoretical analysis and empirical research and proposed thesuggestion put forward to promote the healthy development of farmer cooperatives.