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Analysis of China’s Agricultural I-O structure from 1997 to 2002 Wu, Lingyan (CAAS) Li, zhongmin (CASS) Oct. 23, 2007 Outline Background of Chinese Agriculture:  Some Economic Indexes Views from Input Aspects Views from Output Aspects Conclusions Background of Chinese Agriculture:  Some Economic Indexes Table 1 Agriculture economic condition in general Some findings The agricultural technical service is the only sector which VAR is increasing. However, the average profit margin of agriculture had increased sharply. Labor cost is the most important part of added value, indicating that agriculture still belongs to the labor-intensive industry. The technology of agriculture is behind other industries which also happened in agriculture’s mechanization and value-added ratio. Views of Input Aspect Fertilizer is still a most important input. The importance of fertilizer increases over the years although the marginal benefits decline. This was also true for pesticides and other factors. The cumulative input coefficient of fertilizer and pesticide in 2002 had decreased by 16% and 39% respectively. It is surprising that the coefficient for agricultural machinery was as low as 2.3%. Agricultural production utility is decreasing, and most factors’ margin is dropping, too. Plastic is more effective with Agriculture, because of the extended usage in Plant, such as vegetable and fruit. Forestry is different from others. Its coefficient values are only lower than Plant, but appear direct rise. Views of Output Aspect From the output aspect, agriculture is a basic industry and is highly correlated with 9 industries, especially Sawmills, Furniture and Food Products. The cumulative input coefficients are still very high. But the 2002 data clearly showed that the correlations are decreasing. On one hand, the benefits to agricultural decreased - it added quantity but not value. On the other hand, intensities of processing inputs have increased thus the margin