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Agricultural Policy, Peasant Household Behavior And Development Of Rural Regional Economy

Posted on:2013-10-06Degree:DoctorType:Dissertation
Country:ChinaCandidate:M Q LiFull Text:PDF
GTID:1229330377954919Subject:Regional Economics
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From2004to2012, the Central Government of China announced Central No.1Document which is themed by agriculture, farmer and rural area every year, which proclaims that at the present stage, those issues play an important role in economic construction. Activated by those documents, governments at all levels have carried out a system of policies supporting and benefitting farmers, which increases their income, promotes resource elements allocation to rural areas, sets the stage for increasing agricultural output by increasing investment in agricultural infrastructure construction especially in hydraulic structure. They also promoted urban-rural reform in a coordinative way to enhance the impetus of agricultural and rural development which helps harmonious development of urban and rural region economy. During this process, both central and local governments took a series of measures to increase agricultural production and peasants’income and develop rural areas, which include carrying out the policy of grain for green, abolishing the Agricultural tax comprehensively, establishing new rural cooperative medical system, putting forward rural endowment insurance system and doubling investment in hydraulic structure in ten years planned by the Central No.1Document of2011. It can be predicted that central and local governments will continue to push forward development of urban and rural region economy.At the present stage, it has important practical significance to study the effects that agriculture policies have on rural region economy. However, existing sources have paid most attention on the practical effects agriculture policies took, while few studied how they affected farm household behavior, and then influenced development of rural region economy. Studying how agriculture policies affected farm household behavior helps to understand microcosmic mechanism of how those policies influenced farm household behavior, which has far-reaching impacts of rural region economy. This study aims to research how the three agriculture policies influence farm household behavior, and how changed farm household behavior will influence rural region economy. By this way, we can explore microcosmic mechanism of how agriculture policies influence rural region economy.This paper chooses new farming and outpatient service compensation, grain for green policy and agricultural subsidy as research objects, because on one hand, these policies have wide effects, refer to more peasant families and last for longer time, which make them take profound effects on rural region economy; on the other hand, the statistics and writer’s preference matter a lot, for the writer has collected precious data about agricultural subsidy and grain for green policy by field investigation under the tutor’s help, which also pall my interests in this field.The structure of the paper is as follows:Chapter1is "Introduction", describing the background, meaning and purpose. It also refers to the studying structure and data resources; Chapter2is Literature review, including comments to them. Firstly, it reviews documents of agriculture policies both domestic and overseas, and then the three agriculture policies this paper studies. On this base, contributions of this paper are raised; Chapter3studies impacts new rural cooperative medical system has on peasants’health needs. This chapter firstly analyses changes of peasants demands of health driven by outpatient service compensation, and then estimates changes of medical treatment demands, supporting by data of China Health and Nutrition Survey; Chapter4studies how grain for green policy affects peasants’decision-making actions of producing. It firstly builds peasants’profit model of "grain for green" and "wasteland for green", on base of which to compare relative revenue of the two actions. By this way, to find out how grain for green policy affects peasants’decision-making actions of producing; Chapter5studies how peasants gain higher family net revenue by disposing agricultural subsidy. This chapter firstly demonstrates decision mechanism by which peasants dispose family resources, and then analyses how agricultural subsidy influence the disposition of peasants’family resources; Chapter6studies how peasants’actions changed by the three policies affect rural region economy; the last chapter is conclusion and comments.The contribution of this study is divided into the following three aspects: firstly, this paper studies influences outpatient copayment have on peasants’ demand actions, by simply introducing how outpatient copayment influences peasants with various medical service habits. There are two situations of these peasants, the first one is about peasants who will not see a doctor when getting sick, but after some time, they recovered by themselves, and the second one is about peasants who will not see a doctor when getting sick, by which reason their conditions become more terrible. Studies show that the impact of outpatient copayment on peasants’health demand as follow:on the one hand, outpatient copayment enable illness farmers see doctor as soon as possible; on the other hand, outpatient copayment reduce the probability of hospitalization up to12.3%, prevent the impact of the health shock on household income. Outpatient copayment not only enlarges the stock of farmer health, but also increasing the number of health days of farmer, this means that farmer can provide more time into work. From the short-term point of view, farmer can provide more time into work due to outpatient copayment, so increase the GDP of rural areas. This indicates that outpatient copayment can help rural economic growth. From long-term point of view, farmers get the optimal consumption of health stock in the new equilibrium. Economic growth can’t be continues by outpatient copayment.Secondly, this paper studies the impact of grain for green on behavior of farmer’s agricultural production. Studies show that, on the one hand, the majority of farmers in our data are poor. If government does not pay money for farmers who have used land to grain for green, then farmers will don’t have enough money to alive, so farmers don’t use land to grain for green. However, in order to get money of compensation for grain for green, farmers use wasteland to grain for green. If farmers trust the government’s promise that government must to pay money for farmers who use land to grain for green, then farmers should use land to grain for green replace use wasteland to grain for green. In terms of using wasteland to grain for green, this can’t bring farmers the benefit in the long-term. From above analysis, we conclude that governments should improve their confidence in farmer’s mind. Only to do this, fanners can do anything when government wants them to do anything. Finally, this paper studies the impact of agricultural subsidy on configuration behavior of farmers who how to allocate their labor force and capital. Studies show that peasant households which both engage in agricultural production and non-agricultural job allocate the household resource into non-agricultural industry in order to get more net revenue. This doesn’t help the development of agricultural output. The ratio of peasant household which both engage in agricultural production and non-agricultural job is more than74%in total household in our data. This means that a lot of agricultural subsidy to be allocated into non-agricultural industry. The effect of decrease agricultural net revenue on rural economy is double-edged sword. On the one hand, people engage in non-agricultural industry can get more net revenue than engage in agricultural production, this encourage peasant allocates more household resource into non-agricultural industry, so this promotes the development of non-agricultural economy in rural area. On the other hand, the unit of agricultural production is household, so agricultural net revenue is less than non-agricultural industry. In order to promote the development of agricultural production, government should reform the unit of agricultural production.
Keywords/Search Tags:Agricultural-policy, Peasant household behavior, Ruraleconomy
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