Local Governments´ Behavior in Promoting the Product-market-based Cycle Agriculture

The thesis focuses on studying the local governments´ behavior based on the product market and studying how local governments improve the competitiveness of the cycle agriculture and promote its development in the region by influencing the farming producers´ operating environment. By combining the farming households´ Cournot equilibrium, agricultural products processing enterprises´ Bertrand equilibrium and local governments´ behavior functions, the thesis concludes that to promote the cycle agriculture in the economic sense, local governments must rectify their target functions and prevent from regarding the output alone as the target functions. Because the local governments´ target functions are mainly determined by the achievements assessing targets adopted by the higher governments, it is high time that the central government adopted green GDP assessing targets and achievements targets assessing the regional cycle economy. Only by this can the local governments´ target functions be completely rectified.