The Impact Of Agricultural Machinery Purchase Subsidies On The Export Competitiveness Of The Agricultural Machinery Industry

The development of agricultural mechanization is an important driving force for agricultural modernization.Since 2004,the agricultural machinery purchase subsidy policy has been implemented for more than ten years,which has had a profound impact on farniers' income,agricultural production and agricultural machinery industry development.During the implementation of the subsidy policy,agricultural machinery industry experienced the prosperity and development of the“Golden Decade,.The export volume of agricultural machinery products shows dozens of times of growth,and the types of export products and the export flows are more diversified.Under this circumstance,it is of great practical significance to study the impact of agricultural machinery purchase subsidy policy on the export competitiveness of agricultural machinery industry.Domestic and foreign researches on subsidies for agricultural machinery purchases are mainly limited to areas such as fanners and agricultural development and focus on the income effects and output effects.However,agricultural machinery industry has always occupied a very important position in the value chain of agricultural mechanization development,and it is more necessary and important to turn the focus of research into agricultural machinery industry.Different from other general subsidy policy,this is a direct subsidy for farmers.However,subsidy funds directly affect the effective purchase demand,so it affects the balance of market supply and demand.Subsidies will inevitably have an impact on the production and R&D activities of agricultural machinery enterprises,and thus it affects the international and domestic competitiveness of the enterprises.The influence of micro-enterprise competitiveness will inevitably rise to the whole industry.With the increase of the industrial output value,its export value and export volume will also show corresponding changes.Based on this,this paper takes agricultural machinery industry as the research object,investigates whether the policy has a significant effect on the export competitiveness of agricultural machinery industry,and figures out whether this effect changes with time.Based on comparative advantage theory,national competitive advantage theory and other related viewpoints,this paper deeply explores whether the agricultural machinery purchase subsidy policy affects the export competitiveness of agricultural machinery industry.After the theoretical analysis of its intermal transmission mechanism,this paper uses the micro-enterprise data of China Industrial Enterprise Database from 1998 to 2013 to conduct empirical tests using panel Tobit regression analysis model.It is found that the policy has a significant negative impact on the export competitiveness of agricultural machinery industry,but this negative impact will continue to ease over time and therefore its real effect shows a U-shaped trend.This result is still robust after considering different interpreted variables and different samples.For enterprises,domestic agricultural machinery enterprises should establish a sense of competition,go out actively and do not stick to the domestic market.For policy,we should adjust the agricultural machinery purchase subsidy policy in a timely manner,especially to subsidize agricultural machinery of a specific technical level to promote competition.For innovation,the combination of production,study and research should be encouraged to allow researchers to enjoy greater control over their rights and enjoy their rights.In terms of foreign investment,we should actively improve the investment environment and encourage some European agricultural machinery manufacturers to invest and build factories in China.