Studies on the efficiency of fishery cooperative economic organization

―Taking Laobagang laver association as case―

Abstract

The paper gives a typical case of Laobagang Laver Association which locates Laobagang Town, Nantong City, Jiangsu Province, China. Nantong is a coastal city near Yangzi River and is famous with the production of laver. We use an economic model to analysis the economic efficiency of the Association and briefly introduce its development and function. From the case studies, we draw the following conclusions. The Laver Association can raise the income of farmers and is favorable to local economic development. First, the Association can change decision-making behavior of farmers from decision-making behavior of individual maximum profit to the association’s maximum profit decision-making and the rational equilibrium of individual is translated into the cooperative rational equilibrium and thus prevents the excessive competition between producers. Second, the Association improves the economic growing by reducing the transaction cost. Third, the Association improves the negotiation strength of the farmers and reduces the competition between farmers. Fourth, the Association can save the information collecting cost of farmer. The author thinks when the fisherman’s income increase slowly and there is excessive competition today among fisherman, the government should encourage for developing the fisherman’s association in order to protect the fisherman’s interests and promote the sustainable development of fisheries economy of China.