Empirical research of the relationship between agricultural industrial concentration and market performance of China

As the basic industry of national economy,the production efficiency of agricultural production organization had always been the focus of the agricultural industry.In this paper,we presented the overall performance of agricultural listed companies and compared with secondly industry.We further measured the concentration degree of agricultural industry in China.The cointegration test and VAR model were used to empirically analyze the relationship between the agricultural industry concentration and market performance.Based on the academic point of view that industry concentration highly influenced market performance,this paper aimed to verify that the excessive division of production and management was the main reason for the poor performance of agricultural enterprises.The results showed that the performance of agricultural enterprises was poor and the industry concentration of agriculture was at a low level.In the long term,the performance of the agricultural market had a positive response to the impact of industry concentration.As the concentration of agricultural industry increased by 1%,the agricultural market performance increased by 1.488%.The growth of agricultural industry concentration was conducive to agricultural market performance.Accordingly,this paper put forward a policy recommendation that improving the concentration of the agricultural industry is an important way to increase the performance of the agricultural industry.