A Study On The Effect And System Of Agricultural Subsidization Policy In China

At present, China has been at the metaphase of industrialization. The non-agricultural industries have already been in the leading place in national economy. The increasing power of national economy has mostly come from the non-agricultural. Characteristics between industry and agriculture now are: agriculture doesn't provide funds for industry, and industry should support agricultural development instead. According to international customs and practices, agricultural subsidy has been an important tool of agricultural policies in the world. In a word, it is the core of agricultural policies in developed countries. Accordingly, China should actualize a lot of supportive policies in the agriculture.Opportunities and challenges have both emerged in Chinese agricultural development after China's WTO Accession. We should build a system of agricultural subsidiary policies. At the same-time, we should pay attention to the modes and effects of agricultural subsidy. Therefore, we must study the rules of WTO and experiences of developed countries, find out the basics, evaluate some agricultural subsidies in our country, and put forward some advices. Based on these, the paper probes into the research as follows:1.It clarifies the concepts and scope of agricultural subsidy according to the WTO' s regulations, and summarized theories of agricultural subsidy.2. It analyzes the background of agricultural subsidy. It is new period in China, the question of three rural, namely the rural economy, rural community and rural residents is the big obstacle to Chinese agricultural development. As a biggest agricultural country, China should increase investment and subsidy in agriculture.3. It compares agricultural subsidiary policies of different countries. In china, fanners are less subsidized, agricultural subsidies are which in turn affects the development of Chinese agriculture. Farmers cannot gain many benefits from agricultural subsidy .4 It builds a theory model for qualitative analysis of agricultural subsidiary policies. Effective mechanism of agricultural subsidiary policies may provide a long-term stimulant for the farmers and realize "Nash-equilibrium" .Therefore, we must build a mechanism of supervision for agricultural subsidy between central government and local government, and guarantee the financing of agricultural subsidy to the farmer. At the same-time, it analyzes "green policy" , " yellow policy" and their appliance in China.5.It builds a computation model to demonstrate the effects of agricultural subsidiary policies. Firstly, it studies how the price changes in agricultural materials affect the farmer's productivity. Secondly, it simulates how the different subsidiary projects affect the planting area. Thirdly, it builds a CD model, and analyzes the effects of agricultural produce factor.