Research On Circulation Innovation And Fresh Vegetable Prices Fluctuations

Since twenty-first Century, the sharp rise and frequent fluctuations in agriculturalprices, which has become a major economic and social problem that affects theagricultural producers’ decision and the consumer’s life. Taking fresh vegetable pricesas an example, from the field to the table have to go through multiple links, such asprocurement, transport, wholesale, retail and so on, the costs and benefits of each linkwill be passed on to the final consumer prices. Coupled with fresh vegetablesperishable nature, the level of development of distribution costs and distributionindustry has become one of the main factors influencing the retail price of freshvegetables. coupled with the perishable nature of the fresh vegetables, thedevelopment level of the cost of circulation and circulation industry become one ofthe important factors of fresh vegetables in the retail price. Since^the reform andopening up, China’s circulation industry has been developed rapidly, andtechnological progress and organization innovation improved greatly. Therefore, it isvery important to study the price of agricultural products from the perspective ofinnovation. During the study, the paper first analyzes the research background, thesignificance of the topic, the research mentality, the innovation and the insufficiency.Followed by a review of the existing literature, in detail, the paper is divided intothree aspects:the circulation innovation, the fluctuation of fresh vegetables’ price, therelationship between Circulation Innovation and fresh vegetable prices. Found that heempirical research on the circulation and fresh vegetables’ price fluctuation is weak.The third chapter analyzes the mechanism of the fluctuation of vegetables’ price fromthree aspects:agricultural product circulation organization innovation, technologyinnovation and efficiency. And points out that the agricultural product circulationefficiency can be improved by means of circulation innovation, which can reduce thetransaction cost, accelerat the circulation rate, short controllable circulation time,reduce total logistics costs and so on, ultimately reduce the fresh vegetables’ pricefluctuations caused by circulation.Chapter four first selects the relevant data of2000-2012 years of China’s 31 provinces, and use DEA to calculate the agriculturalproducts circulation efficiency and decompose it. Then analyzes the current situationof fresh vegetable prices fluctuation through the HP filter and the X-12 seasonaladjustment methods, we found that the prices have obvious seasonal fluctuation,long-term rise, cyclical fluctuations and so on. Next we use STATA software toanalyze the panel data,which explanatory variables is TFP of agricultural productscirculation and its decomposition index, and control variables is vegetable productioncosts, Vegetable supply, vegetable demand and consumer price index as and vegetableconsumption price index. The results show that the efficiency of agricultural productscirculation system and technical efficiency can obviously ease the fluctuation ofvegetable prices, technological progress and organizational innovation and puretechnical efficiency can also ease the fluctuation of vegetables’ price, but they are notstatistically significant. Then using 2SLS and GMM model to carry on theendogenous and robust test, it is founded that the efficiency of agricultural productcirculation system and technological progress are the endogenous explanatoryvariables that affect the price of vegetables, and the organizational innovation is notstatistically significant. Finally, the policy suggestions are put forward from Optimizevegetable distribution system and speed up the circulation innovation process twoaspects.