Research On The Impact Of Institutional Quality On The Vertical Integration Of The Fishery Industry Chain

In recent years,No.1 Central Document emphasizes the need to build an entire agricultural industrial chain around the production,processing,circulation and other links of the industrial chain according to local characteristics,so as to realize the effective connection between small farmers and modern agriculture.Under the guidance of national policies,the total economic output value of China’s fishery in 2020 is about twice that of 2010,and great progress has been made.The fishery industry chain has been continuously extended and integrated,empowering fishery practitioners to connect with modern fisheries and becoming China’s fishery industry.Develop an important force for the transformation of old and new kinetic energy and supply-side structural reform.However,the “smile curve” of the entire fishery value chain in China is concentrated in the primary and secondary industries,which are resource-and laborintensive,and the primary processing links of the secondary industry.In addition,the lack of supply of high-quality aquatic products,counterfeiting of aquatic products,fraud,and the quality and safety of aquatic products and their products occur in many links in the industrial chain,and problems such as the instability of trust and cooperation between the main bodies of the industrial chain are emerging one after another.Leading fishery enterprises with a certain scale and popularity can conduct vertical integration of the industrial chain in the form of vertical merger or vertical restraint to improve their ability to resist market risks and uncertainties.In the context of the transition period of my country’s economic development,whether the system is effective and stable will inevitably affect the efficiency of the fishery market.In view of this,discussing the impact of institutional quality on the level of integration of the fishery industry chain is helpful to provide reference for promoting the high-quality development of the fishery industry.China’s fishery industry chain includes many complex links such as feed processing,seedling cultivation,breeding and fishing,processing,circulation,sales and consumption.Under this background,what level of vertical integration has China’s fishery industry chain achieved? What role does institutional quality play in the vertical integration of the fishery industry chain? These questions are inconclusive.Based on this,in order to deeply reveal the level of vertical integration achieved by China’s fishery industry chain and the different effects of different levels of institutional quality on the level of vertical integration,this paper focuses on China’s fishery industry chain.From the perspective of the vertical integration level of fishery enterprises,the vertical integration degree of China’s fishery industry chain is investigated,and the influence of institutional quality on it is explored based on different links.First of all,this paper describes the current research on the integration of China’s fishery industry chain,measures the overall vertical integration degree of my country’s fishery industry chain in the past 8 years and the vertical integration degree and trend of enterprises in different links,and quantitatively describes the vertical integration of China’s fishery industry chain.Secondly,from the four aspects of politics,economy,development of intermediary organizations,legal environment,the effectiveness of the system quality is measured in a standardized way,and the coefficient of variation is used to represent the stability of the system quality.Finally,based on the degree of the vertical integration of fishery enterprises,combined with the characteristics of the fishery industry,the influencing factors of vertical integration are introduced to build an econometric model of the impact of institutional quality on the vertical integration of the fishery industry chain,and through empirical analysis,the two levels of effectiveness and stability of institutional quality are identified.The degree of influence on the overall fishery industry chain and the vertical integration of different links,combined with the measurement and regression results of different links,to explore how to achieve effective fishery industry chain integration,and then put forward countermeasures and suggestions.The main research conclusions of this paper are as follows: Firstly,China’s fishery is concentrated in the primary and secondary industries,which are resource-and laborintensive.The overall fishery industry chain is not mature and the level of vertical integration is low.The development of each link of the chain has its own progress and limitations.The vertical integration of the fishery industry chain represented by fishery enterprises is relatively stable,with small fluctuations,and a slight downward trend in general;in terms of links,the integration of feed and processing trade links shows a downward trend,while the fishing and breeding links show an upward trend.Secondly,the effectiveness of institutional quality has a negative impact on the vertical integration of the fishery industry chain,and the instability of institutional quality will not promote vertical integration of enterprises,which indicates that regional enterprises with poor institutional quality are more inclined to adopt vertical integration strategies.Thirdly,compared with the fishery enterprises with low asset specificity,the effectiveness of institutional quality in the fishery enterprise group with high asset specificity has a promoting effect on the vertical integration of enterprises.Fourthly,there are significant gaps in the impact of institutional quality on the vertical integration of enterprises in different links.Enterprises in different links will also be affected by institutional quality to varying degrees due to their own characteristics,which in turn affects whether the enterprise adopts a vertical integration strategy.Based on this,firstly,it is suggested that,in the process of vertical integration of fishery,different policies and measures should be adopted to strengthen the vertical linkage of the industrial chain according to the particularity of each link and the degree of the affected factors.Secondly,fishery enterprises should formulate vertical integration strategies in line with the system.The development of enterprises is inevitably affected by the external environment.Whether the quality of the system is effective and stable will affect the investment,research and development and other activities of the enterprise.Start with the structure and adapt to changes in the institutional environment.Finally,in the process of vertical integration,enterprises also have to bear the risk of increased costs brought about by vertical integration.Therefore,the government should continuously improve its coordination and public trust functions in order to improve the enthusiasm of enterprises for vertical integration.