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On the Finance Support System for Aquaculture Development in China

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  • In recently years, the finance sector had focused their attention on commerce operation in China.When fisheries farmers decide to increase invent to promote production, they also can't get enough loans because aquaculture is a highest risk sector in agriculture and the commercial banks would prefer others sector in agriculture to aquaculture. In this paper firstly we build a model based on the concept of inverse supply and estimated via cointegration and error correction model on China panel data. It shows that the capital price has no impact on aquatic product price and the labor price has positive impact in the long-run model. This result shows because of shortage of capital, the farmers have to invest more labors, but not capital. As the result the expected output can't be obtained due to saturation of labor evermore the output is down and the farmer price is up. Secondly we analyzed the problem the present finance system had, then put forward a finance support system for aquaculture development, which consists of three layers.
  • Keywords: Fisheries Economics, error correction model, inverse supply, cointegration, Aquaculture Economics and Management, finance support system, aquaculture
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  • Yan, Shi, Zhang Xiaoshuan, Mu Weisong, Liang Anbo. 2004. On the Finance Support System for Aquaculture Development in China. Peer Review: No. In: Proceedings of the Twelfth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 20-30, 2004, Tokyo, Japan: What are Responsible Fisheries? Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2004. CD ROM. ISBN 0-9763432-0-7
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