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After the introduction of the output-related system of contracted responsibilities in the early 1980's, Chinese farmers obtained the decision power of their farm management. Agricultural sector developed rapidly with the appearance of many kinds of specialized households. With the distribution system reform of farm products, the market mechanism gradually came into the agriculture and rural economy. Under these circumstances, it was difficult for the state and collective economic organizations to meet the growing demands for the new technologies and varieties; the services of the before, during, and after production; and the increasing the income of specialized households. Thus the agricultural specialized association emerged as the time required in some areas. The agricultural specialized association1) (ASA) is a technology-economic cooperative organization joined spontaneously by the farmers in a certain kind of agricultural production field, and has the functions of mutual aid and cooperation in the aspects of technology, production, supply and marketing on the basis of the market economy ruled. There were about 115,600 ASAs and 6,200,000 associates in the end of 1998 in China2, accounting for 3.5 percent of the total households, with the main problems of management mechanism, policy and economic support from the government, and unbalanced development. The study analysed the formation and development process of agricultural specialized associations in Liaoning Province from the viewpoints of the internal and external causes by taking the three types of cases to examine the formation factors affecting the agricultural specialized association in China.

The Formation Factors of the Agricultural Specialized Association in China Case study on the associations in Liaoning Province