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Chinese Journal of Management Science ›› 2026, Vol. 34 ›› Issue (7): 359-368.doi: 10.16381/j.cnki.issn1003-207x.2022.1477

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The Government Compensation and Enterprise Investment of PPP Project in Agricultural Products Processing

Xujin Pu1, Yimiao Wang2, Yining Zhou1(), Guanghua Han3   

  1. 1.School of Business,Jiangnan University,Wuxi 214122,China
    2.School of Economics and Management,Southeast University,Nanjing 211189,China
    3.School of International and Public Affairs,Shanghai Jiao Tong University,Shanghai 200030,China
  • Received:2022-07-11 Revised:2023-06-04 Online:2026-07-25 Published:2026-06-18
  • Contact: Yining Zhou E-mail:zhouyiningcru@163.com

Abstract:

In recent years, China has introduced a series of policies to support agricultural product processing PPP projects (Public-Private-Partnership) and guide social capital to actively participate in agricultural product processing projects. Taking the traditional agricultural product processing project as a reference model a game model of agricultural product processing PPP project jointly participated in by the government, enterprises and cooperatives is constructed. Based on the study of the operation mechanism of the agricultural product processing PPP project, the influence of the cooperative’s risk aversion characteristics on the government compensation ratio, enterprise utility, cooperative utility and overall social welfare level in the agricultural product processing PPP project is analyzed. The main findings are as follows: (1) Compared with traditional agricultural product processing projects, all parties can achieve a win-win-win situation in agricultural product processing PPP projects. (2) When the cooperative is risk-neutral, the optimal compensation ratio of the government is always 1/3; when the cooperative is risk-averse, the optimal compensation ratio will increase, but will not more than 1/2. (3) Compared with the enterprise, the PPP project is more beneficial to the cooperative which is risk-neutral and less risk-averse. The research conclusions can provide decision-making reference for the government to better guide enterprises to participate in agricultural product processing PPP projects.

Key words: agriculture public private partnership (PPP), government compensation, business investment, risk-averse

CLC Number: