Impacts Of Grain Direct Subsidy On Wheat Productivity

In 2004,China began full implementation of grain direct subsidy policy.Since the implementation of the policy,China's grain production presents "Twelve times increasing" phenomenon.Besides that,farmers' income has also been greatly improved.At the same time,China's grain production is facing new challenges and problems.For example,the efficiency of China's grain production is too low.Currently,grain direct subsidy policy has been classified as decoupled income support("green box"subsidies)by WTO.Therefore,it is worth thinking about whether the grain direct subsidy has played a significant role for wheat production?Whether direct grain subsidies have an impact on wheat production and wheat productivity,technical efficiency?If so,by what factor(or mechanisms)affected?This study was based on the theory of dynamic asset poverty and thorty of farmer's risk preference,using of the RCRE dataset from 2003 to 2014 in Henan Province which is a panel data.We choose wheat as a study case to analysis the direct grain subsidy impact on wheat productivity in Henan Province.To clarify the precise impact of the grain direct subsidy on wheat productivity,we defined the wheat productivity as the technical efficiency of wheat production,and wheat TFP with its decomposition elements.Currently,Grain direct subsidy has become the decoupled income support,this thesis would like to analysis the impacts of grain direct subsidy on wheat productivity from some different perspective,such as the difference of farm size and imcome level.Specifically,the main contents are:Topic I:technical efficiency of wheat production and wheat TFP with its decomposition elements.This content is based on the Cobb-Douglas production function,we constructed wheat production function.And then,choose the EBM model under DEA Method to analysis the technical efficiency of wheat production in Henan Province from 2009 to 2014.And then use Global-Malmqusit-Luenberger(GML)index model to analyze the wheat TFP dynamic changes in Henan Province.After that,using the expansion of Solow model to decompose wheat TFP into 4 elements:return to education,technological progress,efficiency change,efficiency of inputs.Finally,results show:from 2009 to 2014,the average technical efficiency in Henan wheat production increased year by year,and wheat production in Henan Province has a scale effect;From 2009 to 2014,wheat TFP level has been greatly upgrade.What promoting wheat TFP is mainly by production inputs.Excepet that,human capital and efficiency change are also major factor.But wheat production process to improve the technological advances in wheat TFP the small contribution.Topic ?:impact of grain direct subsidy policy on wheat productivity.This content is based on dynamic asset poverty perspective,by using instrumental variable quantile regression(IVQR)models,2sls model and related instrumental variables,the influence of grain direct subsidy policy on wheat productivity.Using 2SLS models and other tools variable estimation to do the robustness check.The empirical results show that:direct grain subsidy have a significant positive impact on technical efficiency of wheat production in Henan Province,and the greater impact effect on the lower technical efficiency of wheat production;grain direct subsidy didn't have the impact on wheat TFP,however,the less productive farmers have some positive effect;Direct grain subsidy mainly have an affecting technical progress of wheat production and improving farmers' production constraints to promote technical efficiency and TFP of wheat production.Topic III:impact of grain direct subsidy on wheat productivity based on different scale of farmsize.This part of the study is based on a perspective of the different scale of farmsize,based on wheat sown area,we divided all samples into three groups:0-3 acres for small-scale,3 to 6 acres for the mid-scale,6 acres the above is large-scale.Then using panel GMM model and instrumental variable to estimate the effect:the influence of direct subsidy on technical efficiency and TFP with its decomposing element of wheat production.The empirical results show that:grain direct subsidy have a positive effect on technology efficiency of wheat production under 0-3 acres of farmers.Grain direct subsidy didn't have the significant effect on wheat TFP.From the perspective of decomposing elements of wheat TFP,grain direct subsidy has a positive effect on education returns which sown area are 0 to 3 acres and 3 to 6 acres;It influences technical progress of 0?3 acres.However,grain direct subsidy didn't have the significant effect on wheat productivity.Topic ?:impact of grain direct subsidy on wheat productivity based on different income of farmers.Finally,this study from the perspective of income differences between farmers,selected panel IV-Tobit model to analyze the grain direct subsidy impact on technical efficiency,wheat TFP and its elements of wheat decomposition.Finally,selected Oaxaca-Blinder counterfactual difference decomposition model to analyze the influence of grain direct subsidy differences on high and low income wheat productivity.The empirical results show:the technical efficiency of wheat production in the high-income group is higher than the value of wheat production technology efficiency in low-income group;The GML index value of wheat TFP in low-income group is higher than the high-income group;technological progress in high-income group played a more vital role than in a low-income group.However,the inputs efficiency played a more important role in low-income group.The grain direct subsidy has a positive effect on technical efficiency of wheat production in low-income group.What is worth noting the grain direct subsidy didn't have the effect on wheat TFP.Based on the above research,this study shows that:First,impact of grain direct subsidy on technical efficiency of wheat production is significant,and on wheat TFP is not significant.Secondly,the current grain direct subsidy for small-scale farmers have more positive impact.In addition,the impact of grain direct subsidy policy is more significant effect on technical efficiency of wheat production in low-income households.In this study,there is a sense of discovery:under the constraints of agricultural production assets,the farmers can not select the mode of production of high productivity,leading to grain(wheat)productivity loss.In addition,due to the lower amount of direct grain subsidy and its scattered,resulting in large-scale impact of the policy on farmers is not significant.It can not effectively support farmers to achieve wheat scale operation.In addition,the grain direct subsidy policy as a class decoupled income support for low-income households can ease the financial constraints of agricultural production,but to attract the relatively high income of farmers was not obvious.In all,grain direct subsidy can't twist the wheat market and trade.