The Study On Competitive Power Of Hunan Province's Agricultural Products

This paper firstly looks back on China's carrying out the agricultural agreement and its effect in the ex- transitional period after our country entered the WTO. And then analyze the new situation Hunan agriculture industry will face in and after the transitional period. Through the detailed examination on the agricultural products, such as food, meat, cotton and the ramie, it points out that the produce of Hunan province faces both opportunity and challenge under the new situation.After elaborating on the competitive environment of Hunan produce under the framework of WTO, the paper makes an in-depth analysis on the competitiveness of Hunan agricultural products through the combination of quantitative and qualitative method, of macroeconomic and microeconomic analysis, and of static and dynamic sis. The SAI, EAI and AAI show that Hunan produce, such as rice, cigarette, rapeseed etc have certain competitive power. But the general competitiveness coefficient indicates the vulnerability of the competitive power of its produce based on the fine natural resources and adequate cheap labor. Though the output of the rice in Hunan ranks first among other provinces in China for many years, rice in Hunan has no trade competitive power at all. In recent years, the export of rice has been declining, sinking into the predicament. Only a few agricultural products such as silk, cigarette, tea, frozen pork and beef have trade competitive power. However, the export of silk and cigarette accounts for a small proportion in the national export of silk and cigarette respectively, therefore their competitive power are not significant. Moreover, the export proportion of the frozen meat has also been reducing compared with other provinces since China's entry into the WTO.In order to further reveal the source of the status quo of the competitiveness, this paper, according to Porter's competitive advantage theory, examines such conditions as factors, demands, related and supporting industries, enterprise structure of Hunan produce. Because of such constraints as low technology on agricultural goods, few refined and deep raw materials, low added value, prominent conflict between scale and simple production methods, Hunan produce doesn't have notable competitiveness in the international market.