Research On Optimization Of Cotton Industry Chain In Xinjiang Under The Background Of Target Price Reform

National Development and Reform Commission in company with Ministry of Finance announced 《the Notice on Deepening the Reform of Cotton Target Price》in March 2017,said Xinjiang cotton target price reform led to the development of cotton production,processing,circulation,textile industry and the whole cotton industry chain in last three years,and the target price will continue to implement.However,Vulnerable to market shocks,the lack of cooperation mechanism,unreasonable distribution of interests,the market system is not perfect and other practical problems exist in Xinjiang cotton industry chain.Besides,the production of the cotton industry chain with dispersion,cotton processing enterprises serious excess capacity,low degree of organization of cotton warehousing enterprises,the production cost of cotton textile enterprises and the international competition of clothing trader are rising,Facing the problems of Xinjiang cotton industry chain,it is the starting point and standpoint that how to combine the target price reform policy to optimize rationally.This paper argues that the target price policy has had a profound impact on the cotton industry chain in Xinjiang,under the background of need for new research.Optimize the industrial chain not only should analyze the chain level,but also consider the status of the micro subject of the industrial chain.First of all,this paper uses the general equilibrium theory to analyze the cotton target price policy,studies its impact on the supply and demand of cotton market as well as welfare effect.Secondly,this paper analyzes the related subjects and links in the middle and lower levels of the industry chain and the existing problems.In the upstream industry chain link,this paper uses the game theory to study effects of the target price policy for Xinjiang farmers and cotton processing enterprises contract stability;in the middle part of the industry chain,this paper reflects the threshold vector autoregression research target price policy in the cotton-cotton yarn price fluctuations in the conduction;in the downstream industry chain,this paper uses international trade related index research in the stage of target price reform of Xinjiang textile and clothing trade competitiveness.Then,according to the optimization theory of industrial chain,absorbing foreign experience in the development of cotton industry chain,combined with the target price policy,considering the actual problems of the industrial chain and its micro main bodies,this paper studies the optimization of Xinjiang cotton industry chain.Finally,from the perspective of government and the main body of the industrial chain,the paper puts forward some suggestions to improve the target price reform,optimize the operation of Xinjiang cotton chain and promote the development of the main body of the industry chain.Through the research,this paper finds that the implementation of the target price policy of cotton plays a decisive role in the allocation of resources.In the influence of the new relationship between supply and demand,the cotton market to a new balance state,which not only ensures the farmers basic income,but also reduce the cost of acquisition of cotton processing enterprises,improve the competitiveness of China cotton.In the upstream industry chain,the target price reform and increase the stability of cotton farmers and cotton processing enterprises in the industrial chain of contracts;in the middle part of the industry chain,the target price reform to reduce the market price of cotton,through the price volatility transmission and reduce the price of cotton yarn;in the downstream industry chain,the target price reform has certain influence on Xinjiang textile and apparel trade,but also need to combine "The Belt and Road" initiative in order to promote the level of competitiveness of Xinjiang cotton industry chain downstream products to improve international.All these provide the possibility for the extension,promotion and integration of the industry chain.Therefore,to optimize the industrial chain of Xinjiang cotton,need to consider the target price reform and the reality of the situation:In the industry chain extension,vertical and horizontal at the same time;enhance human capital,technical level and value-added products;effective integration in logistics,finance,information and industry chain link.