Research On Synergy Of Diversifying Agricultural Investment During The Course Of Modernization In China

With the development of Chinese economy, agricultural modernization is becoming strategic sense obviously to our modern nationhood. As it is well knows, the development tendency of agricultural modernization is more and more dependently on capital . However, as one important part of the essential ingredient of productivity, capital has been shifting from agriculture to other industries during the long-term modernizationaly practice. In recent years , agricultural investment from government has been strengthening, but funneling effect between micro-main bodies and structure leads to a consequence so the total investment can not meet development of agricultural modernization. So it is very important and urgent to coordinate investment among different bodies and promote their synergy as well as synergistic effect .â‘ ContentsBased on synergetics and other relevant theories,as well as the development process of agricultural modernization, the thesis firstly discusses the interaction between agricultural modernization and diversification and their synergetic sense from the view of history; secondly, the author analyses theoretically each body's investment behavioural characteristic along with their synergy mechanisms; thirdly, the thesis studies the current situation of diversification and synergy in agricultural investment in practice, at the same time, their main influence factors are involved. Then, the author further empirically studies the macroscopical performance and measures the synergy of diversifying agricultural investment in our country with function analysis, time series analysis and panel data analysis; Finally,relevant mechanisms improving agricultural diversifyinginvestment coordinately based on perspective of modernization are built, and some policy suggestions are given in this thesis.â‘¡Conclusions1) The level of agricultural diversifying investment synergy in China is fairly low , but it is becoming higher and higher. It is shown by analysis: the course of diversifying agricultural investment is out of harmonious , and this result is reinforced by relevant impulse response analytical method. By measuring the synergy degree with the data of 1978-2006, we furtherly find out that the synergy degree of diversifying agricultural investment in China is moderate disharmony, and subsystem of government and peasant household is high disharmony indeed. However, the synergy is improving in fact with the whole course of agricultural development perspection. This trend was strengthened from 1992, and were the highest level in1998, 2001 and 2006.2) Enhancing the comparative income of agricultural investment is the critical path to solve low synergy problem during the course of agricultural investment. The research indicates that low comparative income of agricultural investment led to capital loss from agriculture massively. We should enhance the comparative income at least to average revenue among all industries, so peasant households can gain average profit. Therefore, we can enhance enthusiasm of agricultural investment come from peasant households, banks, as well as government.3) Improving agricultural modernization is the fundamental path to solve low synergy problem during the course of agricultural investment. As a result of the research , low level of agricultural modernization led to lowly comparative income. Being still at the transiting stage, our agriculture is fairly underdeveloped and lowly comparative income, so as to the disadvantage of enhancing enthusiasm of agricultural investment. Therefore, some relevant policies should be implemented to improve agricultural modernization ,meanwhile, enhancing enthusiasm of agricultural investment, then agriculture can become more competitive and gain average profit by reforming itself.4) Government should play a leading role in improving synergy of diversifying agricultural investment. In fact, micro-main bodies can not overcome the problem of lowly agricultural modernization and lowly comparative income by themselves, government should strongly intervene market by all encouragement policies to ensure investors of agriculture gain average revenue and improve their profitability as well as competitiveness.5) Investment demands of peasant household should be paid attention to and self-organization of agricultural production and management should be improved. In condition of unfavourable agricultural investment, it is obvious that increasing scale of agricultural investment is strictly worst strategy to peasant households, but diversifying targets of agricultural investment will optimize their economic performances, so these investment portfolios involving sideline activities, doing part-time job and contractual operation in large are practical and efficient options. Therefore, government should attach importance to different investment demands of peasant households, estimate the capability of changing investment appetites of it ,and it is necessary to communicate with each other formally and informally. In addition, improving self-organization of agriculture is an important way to increase agricultural return and enhance the level of modernization,because self-organization contributes to cost saving , risk reduction, and advancing peasant households'bargaining ability along with their market profit, consequently it is involved in agricultural modernization.â‘¢Suggestions1) Combine actions of guaranteeing comparative income with modernizing course of agricultural, and reinforce encouragement policies guiding to modern agriculture.2) Industrial policies of agriculture should be made, and initiative policies should be strengthen, meanwhile, perfect reactive policies , especially the agricultural science and reforming mode of agricultural production and management should be promoted.3) Coordinate fiscal and monetary policy ,enhance short-term and long-term income from investment in two aspects of lowering cost and raising income in agricultural production and management, and improve competitive power of agriculture.4) Furtherly strengthen the development of agricultural market economy system, especially perfect agricultural financing system, service system,and marketing system should be made to, make them more smooth and more efficient.5) Furtherly perfect security system of agricultural investment risks. Firstly rural financial system should be perfect, and chances or abilities gaining capital in agricultural investment should increase; Secondly, we should strengthen insurance service function of coping with major agricultural disasters and dispersive risks; Finally, agricultural reinsurance system and government safeguard mechanism to cope with investment risks of key agricultural products should be more perfect.