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The Temptation of Getting the "Pie"----- The Cost-benefit Analysis on Farmer Specialized Cooperatives Access to Government Subsidies in Mainland China

Ying Zhang, Dapeng Ren
2011 International Journal of Business and Management  
In the Chinese mainland, government subsidies look like a delicious "pie" hunted by different cooperatives. In order to get more charge of it, however, some cooperatives used strategies distorting the cooperative's basic characters. These problems appeared also decline the capital usage efficiency of government subsidies in a certain extent. This paper uses transaction cost theory to explore the current situation and the cost/benefit existed in different cases. The authors believe that the
more » ... lieve that the win-win options for Chinese cooperatives are getting the supportive resource, developing themselves and profiting from the market as well. In the end, authors suggest that the financial subsidies should be more used on building a public service platform to realize more and more cooperatives benefiting.
doi:10.5539/ijbm.v6n9p24 fatcat:rcmetgrixvclrjslm5xmgq3wja