Effect Of China's Agricultural Subsidy Policy:Theoretical Analysis,Empirical Test And Policy Optimization

From ancient to modern times,financial funds to support agriculture has become a typical practice of the government.Horizontally,the world's major developed countries also take various forms of financial subsidies on agriculture.Historically,Wang Anshi's"green" in the Northern Song Dynasty was also the typical practice.Since the reform and opening up,China's reform began from the countryside,and gradually expanded to the city,but for a long time,has not ignored the support of agricultural development.In 2006,China abolished the agricultural taxes,but also implemented some policies of fiscal subsidies,price support etc..These policies have played an important role in the healthy development of agriculture.For example,China's grain output increased by twelve,which can not be separated from the credit of agricultural subsidies.The goals of agricultural subsidy policy are generally three:to ensure food security,maintain price stability and increase the income of peasants.The current agricultural subsidy policy is mainly implemented since 2004,basically forms a complete system,including direct subsidies in the field of production and price support in the field of circulation.But as time goes on,the accumulation of contradictions appear gradually.Especially after the economy into the new normal,the resources and energy as well as the ecological contradiction highlights,agricultural subsidies distort the market price,resulting the increase of the financial burden,the policy efficiency needs to be improved.Therefore,both the theoretical and practical level,the implementation of agricultural subsidies have created a lot of controversy.The face of controversy,this paper argues that we need to respond to the controversy,but also need to adjust and perfect the policy of agricultural subsidies.We need to research the economic effect of agricultural subsidy policy to response to the controversy,and the implementation and the adjustment of policy improvement to reduce the controversy.The main research content of this paper is:through the introduction of the implementation of agricultural subsidy policy in China in recent years,then evaluate the status of the implementation of agricultural subsidy policy,including the development process and the existing problems.In addition to economic analysis of agricultural subsidy policy,the paper will also learn from the experience of foreign agricultural subsidy policy,by selecting the subsidies for the purchase of agricultural as an object,evaluating the effect of the policy implementation by empirical analysis.In order to further research,through a combination of qualitative and quantitative way,by nonlinear empirical analysis,to find out the subsidy policy problems,and analyze the root causes of the controversy.The paper constructs a dynamic general equilibrium model,to provide a theoretical basis for the adjustment of agricultural subsidy policy through the description of the three subsidy policies.Finally,the paper put forward some policy suggestions to improve the agricultural subsidy policy.This paper is divided into seven parts,the focus is the fifth chapter and the sixth chapter.The specific framework of this paper is as follows:The first chapter is the introduction.Firstly,the first chapter puts forward the problem that Study the purpose and significance of studying this problem.Secondly,the first chapter analyzes the concept,structure and connotation on agricultural subsidies.Thirdly,the first chapter briefly introduces the research methods and main contents,the innovation and the insufficiency of this paper.The second chapter is the literature review section.In this chapter,through the introduction of the relevant agricultural subsidies,to provide reference for the following study.This part focuses on the specific issues of the study,focusing on the unity of the classical theory and frontier issues of agricultural subsidies.Both the forefront of research abroad,but also the latest improvement in the implementation of domestic policies.The third chapter is about the Implementation phase and description of policy changes.This part sorts out the historical evolution of China's agricultural subsidy policy,and sums up the agricultural subsidy policy in every period of our country,on the basis of this,studies the agricultural subsidy policy by economic analysis and finds out the influencing mechanism.The fourth chapter is the international experience.This chapter sums up some good experience and practice from some countries,including the United States,Japan and other developed countries,and the agricultural subsidy policy of some developing countries.The fifth chapter is the empirical introduction part.In view of the actual situation of our country,selecting the subsidies for the purchase of agricultural machinery as the object of our study,this chapter using the nonlinear function method for empirical analysis to respond to the controversial.The sixth chapter is the part of policy improvement.This chapter firstly introduces the current implementation of the three agricultural subsidies reform,and then builds a dynamic general equilibrium model,providing theoretical basis for the reform of the three subsidies.Secondly,this chapter gradually reveals the direction of the current adjustment of agricultural subsidy policy in China.The seventh chapter is the part of policy recommendations.According to the policy introduction and theoretical analysis,this paper puts forward the corresponding policy recommendations from the optimization measures of agricultural subsidy policy.The innovation of this paper lies in:first,from the perspective of the agricultural economic growth and social welfare,this paper puts forward the necessity of the implementation of agricultural subsidy policy in China.Second,combined with the reality of China,from the effect of the agricultural subsidy policy as the logical starting point for research,this paper studies the impact of agricultural subsidy policy on agricultural economic growth by empirical analysis,and evaluates the policy distortions and the parts that needed to improve.Third,this paper builds a dynamic general equilibrium model,providing theoretical basis for the reform of the three subsidies.The inadequacies of the paper lies in:first,this paper focus on the history of agricultural subsidy policy from the macro perspective,and draws lessons from foreign experience.Thus,the study on the optimization of agricultural subsidy policy has certain rationality.However,there are some questions that this paper maybe ignore some specific micro policies in the implementation which corresponds to the direction of reform.Second,this paper focus on the theoretical deduction about how to optimize and improve the agricultural subsidy policy.However,the implementation of the effect of the proposed policy recommendations is still to be tested.