Marketing Channel and Technology Adoption: Chinese Villages in the Local Horticulture Market
China has been experiencing the substantial changes in agricultural sectors in the past decades. Interaction between diversified channels for marketing agricultural products and modern technology adoption are important for restructuring agriculture and improving productivity, but fewer researches have been done in this field in China. With the village - level data collected a round Beijing, the capital of China, this study attempts to find out the major market channel(s) in rural China and its (their) linkage with technology innovation in the horticulture sector. The study finds that small brokers still dominate horticultural product distribution in rural area because of their cheap labor costs; however, the modern supply chain components such as supermarkets are penetrating the rural area and competing with small brokers. Modern market channels stimulate the adoptions of new technology, whereas technology adoption had few effects on modern market channel selection. In addition, shares of crop such as vegetables and fruits are soaring; surprisingly villages farther away from Beijing experienced faster crop restructuring with higher specialization. In the future we try to incorporate wholesalers or supermarkets into the analysis, which can depict a more complete picture of rural market development.
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- Dinghuan Hu & Thomas Reardon & Scott Rozelle & Peter Timmer & Honglin Wang, 2004. "The Emergence of Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's Agricultural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 557-586, 09.
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