Operating Mechanism of Investment Fund for Agricultural Industry in China
|School||Southwestern University of Finance and Economics|
|Course||Agricultural Economics and Management|
|Keywords||Financial support for agriculture Agricultural industry Investment fund|
Agriculture industrialization is an important way out for solving the three rural issues-agriculture’s, countryside’s and farmers. It is a necessary need and a natural process of selection to reform traditional methods of agriculture for our country. The development of Agricultural Industrialization is fast, but it is also restricted by multiple factors, especially the lack of fund, which has seriously checked the advance of Agricultural Industrialization. Our agriculture enterprises which are the characteristics of more number, smaller scale and weaker ability to resist risks so that it is difficult to finance from the formal financial channels. Our government try to support lending agricultural enterprise by polices, service, capitals and credits.One hand, limited government funding can only be used to support the key leading agriculture enterprises, a large number of small and medium-sized agriculture enterprises are lack of development,specifically scientific and technological innovation of agriculture enterprises. On the other hand, some problems which occur in the way of financial support for agriculture, such as the absence of government regulation, the more number of the government seek rent, directly affect efficiency of the use of the financial funds. Financial Fund for Agriculture plays an important role in promoting the development of China’s agriculture industry. Financial Fund for Agriculture is of great significance in promoting the upgrade of agricultural industrial structure and the reform of rural system. Therefore, we need to change the use of the current Financial Funds. The agriculture industrialization investment fund, which is taken the start fund by the government finances, guides and encourages social capital to enter the operation of agriculture industrialization, changes the inefficient operation of Finance Funds and shortage of funds of agriculture enterprises. Although in recent years, China set up a few agriculture industrialization investment funds, we don’t have a mature model in reality. It will have great practical significance to research the agriculture industrialization investment fund. On the basis of former studies and supported by the theories of economy, investment and finance etc, the dissertation try to discuss deeply and thoroughly on agriculture industrialization investment fund’s meaning, formation, operation mechanisms. The main purpose is to offer an idea to resolve financing difficulties of agriculture enterprises in China.The full text contains of six chapters.Chapter Ⅰ:Introduction. This chapter mainly introduced the purpose and meaning, current research status and research methods of this paper.Chapter Ⅱ:Introduction to theories. This chapter is the theoretical basis of the full text.In order to have an accurate understanding of agriculture industrialization investment fund, we defined the concept of industrialization of agriculture, industry investment fund and agriculture industrialization investment fund. This paper analysis principal-agent theory and game theory about agriculture industrialization investment fund.ChapterⅢ:The necessity and feasibility of the establishment of the agriculture industry investment fund. This chapter first introduces the status quo of China’s agricultural development. Followed by analysis of the reason of low efficiency of the use of the Financial Funds, and I use simple game model reason out the inevitability of low efficiency of the use of funds in financial support for agriculture. Finally, described the significance of developing investment funds of the agricultural industry in China.ChapterⅣ:The establishment of investment funds in the agricultural industry. This chapter first introduced the agriculture industry investment fund promoters, managers and custodian. Then analyzed and compared the limited partnership industrial investment fund, contractual industrial investment funds, and company industries investment fund.Chapter Ⅴ:Operation mechanism of government guidance agricultural industry investment fund. This chapter begins with a brief introduction of the status of the development of China’s agricultural industry investment fund, and classified fund investments. Then the paper describes the process of fund investment, the investment management of the fund and exit mechanism of the fund. Chapter Ⅵ:The development of the agricultural industry investment fund suggestions. This chapter makes some suggestions on improving our agricultural industry investment fund market, promoting the rapid development of the agricultural industry.This paper analyzes the operating mechanism of the agricultural industry investment fund whose has been established in the market and summarizes the operating mechanism of the government guidance agricultural industry investment fund. It will provide a reference to the newly established agricultural industry investment fund. However, there are. also inadequate. As agricultural industry investment fund what has established has short running time, fund information and data disclosed less. We can’t do empirical research to the agricultural industry investment fund and have lack of quantitative assessment.