Farmers Cooperative Economic Organization Of Property Rights Analysis

Enhancing the degree of organization of farmers to enter the market is the common concern for the intellectual community and decision-makers. At present, one consensus has been reached that Cooperative Economics Organization of the farmers and Agriculture Industrialization is an effective way to solve the Countryside, Agriculture and Farmers Problems and increase farmers' income.This thesis begins with the general principles of Cooperative Association. There are two main reasons for the Cooperative Association, i.e. multi-goals and their special intentions. Compared with company, Cooperative Association has a trade-off between efficiency and equity, which means there is something different in Cooperative Association. Those which emphasize the efficiency side evolve to companies, while those emphasize the equity turn to provide public goods. The latter attributes to the unclear defined property rights of Cooperative Association. The unclear defined property rights shows in two ways. One is that a large part of Common Property Rights and the other is some important right dimensions defined property rights remain as Common Property Rights.A large part of the Common Property Rights in cooperative associations leads to the dilemma between individual rationality and collective rationality. The external effect of Common Property Rights might render abuses of public goods, which causes the difficulties of collective actions. This is the very reason why the agriculture Cooperative Economics Organization developing so slowly. Further more, elite members' participation, as a small group, can act at a much lower cost, which makes the coordination between large members at a high cost unnecessary. So the cooperative association develops to be organizations of only some elites. The amendable principles can be viewed as the selective incentive to achieve the efficiency goal.At the end, this thesis has analyzed the effort to define a more clear property rights and hence the institutional changes of property rights. Because the definition of rights is a constable process, people will not establish a property rights institution when the cost exceeds the benefit. But when the constrain conditions change and the benefits exceeds the cost, a new property rights institution will be developed.