1. Prologue
Thank you, Mr. Chairman, for your gracious introduction. I am honored to have the chance to address you on this special occasion. The topic of my paper is “Transaction Cost and Farmers’ Choice of Agricultural Products Selling”. The outline of my talk as follows. The first part I want to introduce the background of this research. The second part suggests a simple household choice model .The third part covers the data used in this research. And then, we introduce the empirical results. Finally, a simple conclusion is given.
2. Introduction
Well, let’s move on the first part of this topic .The motivation of this work like this. Institutional economics posits that agents making decisions on different types of transactions do so in a costly way .For example , farmers deciding sell a particular crop to whom base their decisions not only on the price they expect to receive in each market choice but also on additional costs related to transacting in these markets.
I want to use a picture to illustrate it. For example, given some market channels, farmers’ choices can be regarded as equilibrium between the surplus and the additional costs that related to transacting .Especially in developing countries, high-value crop producers fully participate in the market and the transaction cost has been the hard constraint to farmers. Furthermore, Farmers’ market choices can be taken as a choice dilemma of transaction cost and production surplus. Consequently, the scientific question of this research is how transaction cost affects planters’ choices.
3. Methodology
Let’s move to the theoretical model of our research. Consider a household model in one rotation. In stage 1 , famer η needs to allocate the input factors .This process can be set into a function like this , Qη means the output farmers decide to produce .p implies the Output price W implies Input Price and. : is fixed input. Once produce what and produce how many are decided, next question to be considered is how much products to be transacted in market. Here we use three functions to describe this question. The first equation, Cη means how much agricultural products used by famers themselves. p implies the price the agricultural product, suggests the fluctuation of Cη. The second equation , qη means the amount of agricultural products transacted in market. The third equation implies the amount exchanged in nth time.
In Stage 3, farmers will decide to sell the products to whom. Chanel j’s market price is decided by an exogenesis price and farmers’ negotiating power.
Besides this, we use a matrix to show the net profit of Chanel j , and then farmers’ choice can be expressed in a typical choice model
Based on the choice model, another important concept is famers’ channel choice .Here, we set five types .They rank by the market barriers. Accordingly, we set a group discrete number to express them. Y: dependent variable Y=5,means farmer choose brokers. Y=1, farmers sell products to consumers directly.
4. Data and estimation procedures
Here, we illustrate the data distribution with this map. According to the Agricultural regionalization from Department of Agriculture, The apple specialization areas in China contain two parts: Bo Sea area and Loess Plateau. Bo Sea Area in red color, contains Hebei, Shandong and Liaoning 3 provinces. And Loess Plateau in green color, contains Shanxi, Henan, Shaanxi and Gansu 4 provinces. Firstly, we use PPS method to get the first stage sampling unit 14 counties in 7 provinces. Then use random sample method to get village and household. They are our sample distribution.
5. Empirical Results
6. Conclusions
International Conference onSpace Technology
Distinguished guests, distinguished delegates, ladies and gentlemen, and all the friends:
At this special time of wonderful September, in this grand hall of the beautiful city, our respectable guests are here getting together. Jointly sponsored by the International Astronautical Federation (IAF), International Academy of Astronautics (IAA) and the International Institute of Space Law (IISL), undertaken by China National Convention Center at Beijing, the sixty-fourth session of the International Astronautical Congress will be open. Now, first of all, please allow me to give our hearty welcome to all of you present, and thank you, for your friendly coming. We feel so proud, and appreciated as well to be the host of the event.
For this conference, we are following the agenda here. The meeting is supposed to last for five days,it is the first congress which covers the true sense of space science and exploration, space applications and operations, space infrastructure, space and society multidimensional fields.And it to be separated into two parts, to begin with, we’ll invite some representatives from our guests to give lectures about their latest researches and reports on the issue, and then we will have some symposiums.
And finally I wish you an unforgettable and prefect experience here.
Thank you!
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