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Economic
System
Main Investors
Motivation
Investment Mechanism
Planned
Economy
State strategic goals
Administrative means,
government order
Country, Collective
To meet some needs,
pursue the
economic benefits
Market
Economy
Peasant(Peasant
Household)
Economic means, free
trade
Peasant is the main
body, government
macro-control
Economic benefits
and
social benefits
Mixed
Economy
Market mechanism and
government functions
Table 5. Economic system and investment behavior
2.3.3 Being market-oriented, developing the agricultural machinery cooperative
Scientific and reasonable mode of agricultural machinery management is a supporting
condition in developing agricultural mechanization, and also the intrinsic request to develop
the modern agricultural productivity. Since the rural reform, agricultural machinery entered
the market as commodity, forming resource allocation mechanism leaded by the market and
the developing mechanism to pursue the economic benefit maximization, and these effectively
promote the agricultural socialization and marketization. Different forms of agricultural
machinery professional services firms, joint stock partnership, farm machinery professional
cooperatives and farm machinery association, farm machinery users association and so on
developed well in the whole country, and maintained a good momentum of development. Till
now, they have become the market's main body and they are in the process of independent
operation and financial self-sufficiency, self-accumulation, and self-development, fully
displaying the strong vitality of farm machinery service socialization and marketization and
outstanding development prospect.
Agricultural Machinery Cooperative (AMC) is the main development direction of Chinese
Agricultural machinery socialization service. This is beneficial to the integrated application,
large-scale promotion, moderate scale operation and industrialization (Li, 2009; Biser, 1983;
Russo, 2000). 'Chinese State Council's opinion on promoting development of agricultural
mechanization and farm machinery industry nicely aand rapidly' and the 'Chinese agriculture
ministry's opinion on accelerating the development of agricultural machinery cooperatives
have been issued Successively', which clearly require to promote the development of AMC.
Table 6 shows that the number of AMC in 2007 and 2008 is respectively 4435 and 7860 and the
number in 2008 is 77.23% larger than that in 2007. During this period, Agricultural machinery
cooperatives in China developed at a high speed and the quantity increased substantially. This
was due to the promulgation of the law on farmers' professional cooperatives and the
implementation of various supporting policies. Table 7 shows statistics of the development of
Chinese agricultural machinery cooperatives in 2007and 2008.
Item 2007 2008
Rate of Increase (%)
Total number of AMC 4435 7860 77.23
Data Source: The agricultural mechanization management department
of Ministry of Agriculture,
investigation of AMC development in 2007 and 2008.
Table 6. AMC development situation in 2008
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