The Stability Research Of Farmer And Processing Connection Way In Agricultural Industrialization

It is very difficult to sell product in china because of contradiction of "small farmer’" and "big market". Only the realization of farmer and enterprise coupling, can product smoothly flow toward the market to realize its value. The farmer and agricultural product processing enterprises actively explore the possible links, and have formed five kinds of basic connection way since the last century90time when Central Committee puts forward agricultural industrialization. Some connection way which enterprises and farmers adopt are successful, but the others are failure. This means that the some connection way have both stability factors and unstable factors. What factors determine the success or failure of the connection way? Have the stable connection way? How to realize the stable connection way? These are the problem that must think. It is very important to study these issues under the background that the Central Committee puts forward to raise agricultural industrialization, organization degree.This study applies the theory of transaction cost and game theory to analyze stability of connection way. The purpose of the study is to analyze how transaction cost affect the stability of the connection way, and find out the stability condition of the connection way. To achieve the research goal, this study analyzes transaction cost generation mechanism of all kind of connection way and factor of transaction cost. The study analyzes how to influence stability of connection way by effecting transaction cost.Through the research, this study reached the following main conclusion:1) The factors which affect the transaction cost of the enterprise and farmer are complex. Many factors, for example, natural risk, market risk, agricultural product attribute, enterprise characteristics, household characteristics, policy factors, and so on, have influence the transaction cost of enterprise and farmer. The enterprise and farmer constantly adjust their behavior to minimize their transaction cost in constraint condition.2) It can improve stability of the connection way to reduce the transaction cost especially the endogenous transaction cost. The enterprises and farmers choose connection way according to transaction cost. If the enterprises or farmers assume a more transaction costs in connection way, they will choose to exit, and participate in other connection way. The opportunistic behavior interact of enterprise and farmer to produce the endogenous transaction cost in each connection way. The enterprise and farmer efforts to reduce the endogenous transaction cost by adjusting the behavior. The various factors effect transaction cost through the influence of endogenous transaction cost. Reduce the endogenous transaction cost can great influence stability of the connection way.3)Each connection way may be stable. The enterprise and farmer choose connection way according to the principle of minimum transaction cost. When the choice of the two is consistent, the connection way is stable according to constraint condition, otherwise, a party will exit, and the connection way is unstable.This study proposes some policy suggestion which improve the stability of connection way according to the above conclusion. This study may be of innovation is that the study analyzes the transaction cost of the enterprise and farmer, and gives stability condition of connection way. The study cannot test the conclusion of the study from the angle of econometrics measure because of lack of data.