The Analysis Of Output Efficiencies Of Input Factors Among Wenzhou Agriculture

The importance of agriculture in the local economy of Wenzhou has been declining since the economic reform and opening up in China. The same is true for Zhejiang Province and the country as a whole. But the trend of agricultural decline is more obvious in Wenzhou. However, since agriculture is the basic industry for the survival of human society, it still enjoys the status of "the foundation of national economy"and has the importance of being "the first industry".Therefore, the research of this thesis focuses on measuring the output efficiencies of input factors among agriculture, industry, and commerce, those of the public financial support to agriculture, and those within the agricultural sector. The thesis also briefly analyzes the reasons for differences in output efficiencies. The research aims to help raise the efficiency of factor inputs and promote sustainable, healthy, and stable agricultural development in Wenzhou.This thesis has completed three research work: (1) Estimated the technological and economic coefficients of the agricultural, industrial, and commercial sectors in Wenzhou SNA UV schedule based input-output model; (2) Built all-stages and different-stages regression models of output elasticity of public financial input in agriculture in Wenzhou, and obtained the corresponding elasticity estimates; (3) Built regression models of output efficiencies of input factors within the agricultural sector in Wenzhou and obtained the output elasticity estimates of various input factors in the sector. This thesis utilizes the following statistical tools and techniques: The Excel program, Eviews5.0 statistical software for OLS (Ordinary Least Square), Granger causality test, unit root test, Chow test, and SPSS statistical software for principal component regression analysis.Based on these studies, access to the following conclusions:Firstly, Wenzhou has enjoyed a relatively rapid industrial and commercial development, but the agricultural development has lagged behind. The agricultural sector has remained a relatively closed system; it has limited impact on the industrial and commercial development, and the latter also has limited impact on the former. Secondly, the public financial input in agriculture in Wenzhou has played a positive role in promoting the growth of agricultural output, and increased public financial support is needed for further agricultural output growth. The elasticity after 1994 is smaller than that before 1994, indicating that financial support should not simply mean a cash injection, and that the efficiency of the use of public financial investment needs to be further improved so that the marginal returns of public funding for agriculture is maximized. Thirdly, among the various factor inputs in the agricultural sector in Wenzhou, the effective irrigation area and the number of people engaged in agriculture in Wenzhou have a negative effect on the agricultural output in Wenzhou, whereas the total power of farm machinery, rural electricity usage, and the amount of chemical fertilizers used have positive effects on the output.Accordingly, the thesis presents relevant policy recommendations:Firstly, Wenzhou needs to take advantage of the industrial development to vigorously develop modern agriculture. It also needs to take advantage of the commercial development to develop contract farming. In addition, it needs to take advantage of the availability of abundant private capital in Wenzhou to develop specialized agriculture. It further needs to fully tap the existing potential for agricultural development to promote transformation and upgrading of agriculture. Secondly, appropriate adjustments need to be made to different parts of Wenzhou City in terms of the degree of public financial support to agriculture. The public financial input structure needs to be optimized and the operational efficiency of public financial funds for supporting agriculture needs to be improved. The integration of public financial funds for supporting agriculture needs to be strengthened, and the fiscal sharing system needs to be improved. Economies of scale with regard to capital need to be emphasized. The development of rural financial cooperative organizations needs to be accelerated so as to attract societal capital into the investment in agriculture. Thirdly, the potential needs to be tapped to promote the efficient use of fertilizers, agricultural machinery, and electricity in rural areas. Measures need to be taken to promote a smooth and orderly migration of rural surplus labor in Wenzhou, and to mitigate the reduction of effective irrigation areas in Wenzhou.