A Study On Reform Of Agricultural Subsidy Policies In The People's Republic Of China

China has made a lot of efforts to achieve the balance of urban & rural development. Now we are in a new period of building new rural areas and to solve "the Three-dimensional Rural Problem" of Agriculture, Farmers, and Rural Areas China has a huge number of farmers and its public financial resource is limited. The policy system of agricultural subsidy supports the land ownership of farmers. The innovation, improving and adjustment of agricultural subsidy are significant to implementing the policies of "Three-dimensional Rural Problem". The importance of Agricultural Subsidy has been recognized by the economists and for a long time. But the research and conclusion of the experiences and lessons on Agriculture Subsidy are still to be furthered. Disputes still exist in the targets and orientation of the policies of Agricultural Subsidy. How to establish a policy system of agricultural subsidy that is suitable for China is still a big task.Based on the theories of Western Economics about agricultural subsidy and the study of Chinese agricultural subsidies, the dissertation addresses the new situation appears in the reform, and proposes opinions on how to improve the agricultural subsidy policies and to achieve the coordinated development of economy and society in rural areas.This dissertation is composed of four chapters.The first chapter addresses the theoretical basis for the government to implement the agricultural subsidy. The chapter describes the Microeconomic Theory on Agricultural Products; the Competitive Advantage and "New" Trade Theory; the Welfare Theory: Increase of Domestic Welfare; the Public Finance to Correct Externalities and the Application of Agricultural Multi-Functionality. This chapter provides the theoretical base for following Empirical Analysis.The second chapter deals with the development and analysis of Chinese policies on agricultural subsidy. The chapter is devoted to the review and analysis of the policies of agricultural subsidy since the founding of the People's Republic of China. First part is the review of the policies on agricultural subsidy from the end of 1950s to 2003, concludes and analyzes the agricultural subsidy polices in the period. The second part handles the conclusion/review of the agricultural subsidy policies after 2003 and analyzes the main characteristics of the agricultural subsidy policies in the period. And the last part contributes to the effects of the direct subsidy policies on food.The third chapter inquires into the orientation on the reform of agricultural subsidy policies in China. Based on the history and analysis of agricultural subsidy policies in China, the chapter indicates that the orientation of agricultural subsidy policy reform must be in line with the overall targets of agricultural subsidy policies; the national food security and the increase of farmers' income are the main purposes of the government's support on agriculture.The fourth chapter presents the proposals on furthering the reform on agricultural subsidy policies in China, which includes .Mechanism on Stable Agricultural Subsidy Growth, Agricultural Subsidy for Food Security; "Green Box" Subsidies Implemented for Sustainable Agricultural Development; "Yellow Box" Subsidies Adjusted to Increase International Competitiveness of Agriculture; More Subsidies for Production and Circulation System of Agriculture; Farmers' Income Subsidies and Farmers' Income Security System; Innovation on Agricultural Subsidy Management.