Nanjing Rural Industries Of Comparative Advantage

As the basic of trade, the comparison advantage theory explains the motive and trend of the international trade, and is very instructive to the economic division of labor in reality. In the open economy, only when a nation or a distract implements the division of labor, and distribution of production according to the comparison advantage theory can it realizes the optimum distribution of resources and welfare. This paper tentatively applies the comparison advantage theory to the analysis of the comparison advantages of each industry, each branch of agriculture and the main produces in the rural Nanjing, and it probes the trend and the tactics of the adjustment of rural industrial structure in Nanjing. The conclusion has is important in advancing the coordinate development and the structure optimization of the rural industries of Nanjing and in realizing the sustainable, fast and healthy growth of the local rustic economy. The research approaches adopted also have an influence on the research on the industrial comparison advantage and structure adjustment in other areas. This paper uses the AAI(Aggregated Advantage Indices ) to prefigure the comparative advantages of the three industries, the subdivided industries in agriculture (planting, forestry, husbandry and fishery ), and the various produces (including grain crops and economy crops ) inside the planting in the rural Nanjing; the paper also uses comparative cost/profit ratio~. cost/pure profit ratio.. hundredth output physical cost. hundredth output production cost to analyze the comparative advantages of the main produces from husbandry and fishery. The quantum analysis of comparison advantage is made in two levels: first, the paper analyzes the advantages compared with the average data of Jiangsu and then analyzes the advantages compared with neighbor representative cities. The advantages of agriculture, including planting, forestry, husbandry, fishery and the staples produced and supplied by them are analyzed mainly by comparing with the average level of Jiangsu, Yangzhou, Suzhou and Wuxi. The advantages of the non-agricultural industries arc analyzed mainly by comparing with the 57 average level of Jiangsu, Suzhou and Wuxi. Under the guide of trying to improve the production and supply abilities and meet the consumption, the conclusion presents the trend of the rural industrial structure adjustment in Nanjing from the angle of comparison advantage and market demand. On that basis, the conclusion goes on to hypothesize the strategies of the adjustment and optimization of the rural industry structure in Nanjing: (1) keep and develop the industries of comparison advantage and reasonably adjust the rural industry structure guided by the market; (2) speed the formation of the industrial comparison advantage, reverse the industrial comparison disadvantage and optimize the rural structure by use of science and technology.