Market regime and industrial advantages:* sociological study of the regional differences in agricultural industrialization

FU Ping1

(1.School of Sociology, Central China Normal University; Hubei Social Development and Social Policy Research Center)

【Abstract】In the advancement process of agricultural industrialization, in spite that some areas in the same macro institutional environment are provided with similar natural resource endowments and the same industrial organization form adopted, they show totally different development outcomes. It helps to reveal the causes and social mechanisms revealing the phenomena above by focusing on the relationship model and its influence between the government and other market actors from the perspective of market regime, and by emphasizing its diverse characteristics. Based on the view above, the results of the comparative analysis that was performed between the crayfish industries in Ting City and Han City showed that the government’s industrial development strategy is interacted with its “understanding” mechanism, resulting in local differences in the market regime of the same industry. Different market regimes can strongly shape the competitiveness of local industries by constructing distinctly different industrial organization processes, market structures, policy opportunities utilized, and innovation capabilities. Thus, it solidifies and widens regional differences in the industrial development. The effectiveness of the market regime in the industrial development has several preconditions, and should all be paid attention to in research and practice.

【Keywords】 agricultural industrialization; market regime; industrial advantage; local government;

【DOI】

【Funds】 the phased achievement of Foundation for the Author of National Excellent Doctoral Dissertation (201306) the phased achievement of the Fundamental Research Funds for the Central Universities of Central China Normal University (CCNU17Z02004)

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(Translated by ZHANG Wenyao)

    Footnote

    [1]. This paper is the phased achievement of Foundation for the Author of National Excellent Doctoral Dissertation (201306) and t the Fundamental Research Funds for the Central Universities of Central China Normal University (CCNU17Z02004). The first draft of this paper was presented at the Lilin Forum (2016) (Beijing), China Youth Social Scholars Alliance Forum (Wuhan) and Academic Seminar (Wujiang) for Commemoration of the 80th Anniversary of Prof. Fei Xiaotong’s Jiangcun Survey. Liu Shiding, Wang Hejian, Feng Shizheng, Lyu Peng, Zhang Xiang, Liu Chengbin, You Yiwen, Liu Zixi and other teachers and friends gave helpful comments and suggestions, and anonymous reviewers also put forward valuable opinions. Many thanks. [^Back]

    [2]. ① The land area of Ting City is only one seventh of that of Han City, so the breeding area and production of the former are much lower than the latter. The processing and sales of crayfish are highly dependent on aquaculture because post-harvest adult prawns are not easy to keep fresh and alive. It is very important for the circulation and transportation radius ranging from the breeding site to the processing site: the longer the transportation time, the higher the death rate and the lower the value. In this regard, Han City has a good foundation for the development of crayfish processing. [^Back]

    [3]. ② The number of processing enterprises and their processing capacity in Ting City have far exceeded that of Han City, and a large number of crayfishes cultured in Han City are acquired every year. Although it is impossible to verify what proportion of crayfishes processed in Ting City comes from Han City, the chairman of a company in Han City said: “I went to Ting City three years ago to calculate the quantity of crayfishes processed there, and approximately 70 % came from (were provided by) our Han City” (201602-CSN). [^Back]

    [4]. ① For example, many national and international academic seminars for crayfishes have been held in Hubei Province in recent years, and the annual crayfish culture festival in Ting City since its first launch in 2009; Ting City Crayfish Vocational College is the first vocational school serving crayfish industry in China, and Hubei Province Crayfish Industrial Technology Research Institute is also settled in the local area; the Technical Regulations of Ting City Crayfish “Crayfish and Rice Cropping” which was summarized and refined by local technicians was published and implemented as the national industry standard; the National Ministry of Agriculture praised the crayfish and rice cropping model as a successful example of modern agricultural development and actively promoted it to more than 20 provinces and cities. More importantly, Ting City controls the discourse power in crayfish market pricing: the purchase price of local enterprises influences the trading price of crayfish market in Jianghan Plain, and the price of products released in domestic and international markets directly determines the price of the sales market. [^Back]

    [5]. ① Some studies have revealed that the adjustment of agricultural structure in some areas has fallen into the repeated inefficiency circle of new industry-inefficient operation-new industry (Liu et al., 2017). To a certain extent, it belongs to another form of expression of the results chosen by such a behavior. [^Back]

    [6]. ① The processed product of crayfish is export-oriented product, so that the analysis on export processing can reflect the scale and strength of enterprises in processing to a greater extent. [^Back]

    [7]. ① For example, a leading company in Ting City, has received many special project support from the central government in recent years, including the national project for enriching people and strengthening county of “High-efficiency Breeding and Deep Processing Technology Integration and Industrialization Demonstration of Crayfish in Ting City”, the China Spark Program, namely, Promotion and Demonstration of Procambarus Clarkia Quality Seedling and Breeding Technology, the special project of international scientific and technological cooperation of Joint Technology Development of Procambarus Clarkia Original Breeding, and the Industrial Transformation Project of National Resource-depleted Cities. [^Back]

    [8]. ① This can be one of the important reasons why the crayfish industry in Hubei Province can surpass that in Jiangsu Province later. In the interview, the chairmen, general managers and government officials of many processing enterprises believed that the decline of the Jiangsu crayfish industry since the beginning of the 21st century is mainly caused by the degradation of the germplasm resources of crayfish, but Jiangsu Province has not solved it well, resulting in significant reduction in aquaculture production and further affecting its processing. For example, chitin product processing industry in Jiangsu Province developed earlier than Hubei Province, but it was only short-lived due to the serious shortage of raw crayfish shells, and the decreased number of processing enterprises and volume. [^Back]

    [9]. ① Some local governments have simply supported the specific industries that have no basic conditions in terms of taxation, land, and credit, leading to common cases of failure. When the phenomena of overcapacity, redundant construction, market failure, and “zombie enterprises” are frequently reported by the media, people tend to understand the results that are generated by the government support to be in deviation from its behavior and policy objective. This paper has implications in policy that the government’s industrial policy should focus on industrial innovation behavior that may bring long-term benefits and further, to create a good environment for the supply-side structural reform of agriculture, and provide incentives to compensate for market failure. [^Back]

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This Article

ISSN:1002-5936

CN: 11-1100/C

Vol 33, No. 01, Pages 169-193+245-246

January 2018

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Article Outline

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Abstract

  • 1 Question proposed
  • 2 Market regime perspective and its analysis path
  • 3 Research method and cases
  • 4 Difference shaping of market regime and development concept
  • 5 Advantage construction and development divergence: influence mechanism and effectiveness of market regime
  • 6 Conclusion and discussion
  • Footnote

    References