Abstract

Supply chain integration can promote the development of local economy effectively, especially the development of agricultural supply chain. In this study, we test the long-term relationship between supply chain and local economy by using time series model. According to the VAR model, it can be seen that the agriculture supply chain promotes food processing industry growth. LnASC at lag 1 period increased one percentage can drive LnFPI growth by 1.28%, LnASC at lag 2 period increased one percentage can drive LnFPI growth by 0.22%, so the effect of agriculture supply chain on food processing industry is obvious. Therefore, agriculture supply chain and food processing industry have direct mutual promotion effect. The development of agricultural supply chain has a significant role in promoting the local economy and promoting employment.

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