Traditional economics theory assumes that the firm is the pursuer of profit maximization. The shareholder is the owner of firms, so the profit maximization is the shareholder interest maximization.
This research used new institutional economics and new classical economics theory to explain the externalities of agriculture mechanization and give the reasons of financial support policy.
New classical economics theory holds that the region which has rational economic man character will conduct research and development because of self interest.
Taking the economics theory as guiding ideology, the paper mainly analyses on the development of corn harvest mechanization in Hebei province.