Research On Under-forest Industry Cultivating Mechanism: A Case Of Shannxi Public Welfare Forest

In the background of deepening collective forest ownership reforming and liberalizingforest franchise, under-forest industry has been a new growth of farmer’s income. Combiningthe reality of under-forest industry development in Shaanxi province, this study makes ananalysis of its current status and existed problems. In the condition of imbalance developmentof under-forest industry of Shaanxi province and less willing in developing under-forestindustry of famers, this study establishes an impact factors model of under-forest industrythrough field survey, this paper estimates the model in a Heckman two step approach. Finally,this study proposes a practical cultivating mechanism for the under-forest industrydevelopment of Shaanxi public welfare forest pursuant to the empirical research results. Themain research conclusions are as follows:(1) Speaking of the current status of under-forest development in Shaanxi province.Forest resources are unevenly distributed and have obvious difference between the south andnorth Shaanxi province. Public welfare forest in south consists of89.7%of the overall forestarea in Shaanxi, where it is suitable for under-forest industry development. Due to theregional development imbalance, there are lots of problems in the development process ofunder-forest industry, such as low level of market organization, not sized industry, insufficientcapital investment, unconsciousness of science technology among farmers, unsound industrystructure, no effective policies from govern for stimulating the development of under-forestindustry, poor infrastructure in forest regions and so on.(2) In the empirical analysis section, this study models the impact factors of under-forestindustry, estimates the impact factor of under-forest industry income and the impact factor offamer’s willing in developing under-forest industry in a Heckman selection model. The resultsrepresent that labor investment, forest area, number of forest and financial support are theprime impact factors which affect the income of under-forest industry. In the impact factorof famer’s willing in developing under-forest industry, financial support, govern policy, forestsubsidy, collective organization, technical training, forest insurance and market prospect playa great part in determining famer’s willing in developing under-forest industry. By contrast,sex, degree and income sources do not show any obvious impact on famer’s willing indeveloping under-forest, and the estimation coefficients are not significant as well.(3) Finally, combining the current status of under-forest industry development of public welfare forest in Shaanxi province, the existing problems and the empirical research results,this study proposes specific policy suggestions and measures for cultivating under-forestindustry of Shaanxi province. For policy, govern should issue effective policy directions. Forfinancial support, we should expand the financial sources and strength the financialinvestment of under-forest industry. For organization, we should cultivating leadingenterprises and promote to establish the cooperative. For technical training, we should payattention to talents cultivation. For marketing selling, we should implement brand strategy andbroaden the sales channels. In addition, we should protect the eco-environment whiledeveloping the under-forest industry.