Industrial And Agricultural Price Scissors In China Form And Trend And Countermeasures

The existence of industrial and agricultural price scissors is a historic problem, caused by the imbalanced strategy of industrial development priority, under the planned economic system. It is related to the two major industries, agriculture and industry. It reflects that the long-standing urban-rural structure has brought the agricultural recession, sluggish rural consumption and other deep-seated problems. Scissors problem is not changed as economic structure dissipated. In market economy system, because of produce supply and demand, the price policy by the state, circulation channel as well as other factors, the scissors still exist.The size of the price scissors is not unchanged. From the abroad developed countries experience of the price scissors, we can see that price scissors may be shrieked and wiped out, when the country develop.In this paper, by the modified S-S price scissors model, building government objective function under the market economy condition, we can solve the weight of workers and peasants in government objective function since1992-2010, evident the nearly20years’ scissors situation. Then, it takes cost profit method to calculate the price scissors size during the main years since1992-2010. Comparing the price scissors sizes during the main years, it comes to a conclusion that our country price scissors size is shrinking in recent years. Finally, through summarizing the development experience of the price scissors in developed countries, it offer policy suggestions to narrow price scissors from two aspects that putting up the produce price and razing the Agricultural labor productivity.