Effects Of Foreign Capital On China’s Corn Seed Industry Security

Seed industry is the basis of a country’s strategic industries. With the market development of China’s seed industry, participate in international competition has become an inevitable trend in the development of the seed industry. Under this background, the foreign capital to China’s seed market layout, corn species has become one of the most broad areas of foreign investment. Take soybean industry for example, once the corn seed industry by foreign capital control, will bring great threat to national food security. Therefore, study the effect of foreign investment on China’s corn seed industry security, has the very vital significance.In this paper, by adopting the combination of theoretical research and empirical research, analysis of foreign capital in its influence on China’s corn seed industry safety. First of all, through the analysis of the basic situation of corn seed industry development in China, combing out the main problems existing in the corn seed industry development. Analysis the main mode of foreign investment in corn seed industry, explain the characteristics and trend of foreign capital in the development of corn seed industry; Second, from the motivation, ways, control, the negative effect of foreign capital to explain the security mechanism, and from the perspective of crowding out, by Feder model, the empirical analysis of the influence of foreign capital of corn seed industry security; Again, by building the corn seed industry safety evaluation index system, using the DEA model, evaluating the current China’s corn seed industry security; Finally, combining with the analysis, to maintain security of corn seed industry related Suggestions are put forward.Following conclusions can be drawn in this thesis:(1)Foreign capital affect the role of the corn seed industry safety way is control technology, equity, varieties, and the market share;(2)Positive impact on foreign capital in corn seed industry safety performance in resource-rich, enterprise demonstration and enhance the welfare of farmers,negative impact performance in the monopoly effect, crowding out, talent flow effect and the effects of curing technology and industry association effect;(3)Feder model analysis results show that foreign capital in China’s corn seed industry has obvious inhibitory effect on output, the foreign capital has a crowding out effect on corn seed industry;(4)DEA analysis results show that the average seed industry safety comprehensive benefit value higher than 0.9, prove that the current China’s corn seed industry is in a state of basic security.