An Innovative PPP Mode For Supplying Agriculture Infrastructures

The effective supply of agricultural infrastructure is an important guarantee foragricultural and village’s sustainable development. The empirical analysis in thisdissertation shows that, the investment shortage is the primary reason of the country’ssupply of agriculture infrastructure, and the defects in the mode of agricultureinfrastructure supply is one of the important factors that lead to the insufficient supply.It mainly reflects in the singleness of supply subject, insufficient of local finance andfinite market incentive,etc. From the management level,in order to solve the problemof the insufficient supply of agricultural infrastructure,there are lots of experiencewe can draw lessons from foreign countries,among them, the PPP model is one of theimportant methods which developed and been rapidly extended in recent years.After the development of the reform and opening up for30years, the economicaggregate increase substantially and folk private capital stocked is considerable. It isof great importance to encourage the private capital to participate in the supply ofagricultural infrastructures through the PPP mode. This dissertation, with the help ofthe STATA software, collects PPP data of agricultural infrastructure projects of30developing countries in the world, and builds dynamic panel data model. It analyzesthe main factors which influence the PPP investment by using the GeneralizedMethod of Moments(GMM) to seek the positive way to incent PPP investment.PPP mode is a new public products supply mode which appeared in1990and iswidely used in many countries. Through the model analysis, we learned that bindingthe building stage and operation stage of the agricultural infrastructure within PPPmode can encourage builders internalize own cost, thus to increase the investment ofbuilding stage and lower the total cost of supply. In addition, in this mode thegovernment’s cost can be reduced and the social welfare can be improved. Therefore,encouraging the private sector to participate in the supply of agricultural infrastructurethrough the PPP mode, not only can solve the problem of the insufficient supply ofagricultural infrastructure and supply a better investment way of private capital, but isalso positive for both agricultural development and the solution of the problem offarmers, villages and agricultures.Our government should motivate the private sector actively to engage in thesupply of agricultural infrastructure PPP projects by various means. Including increasing the science and technology investment in agricultural infrastructure,protecting the return on investment of private investors by establishing financingassistance mechanism, offering the certain preferential tax and cash compensation andthe right compensation, etc; Otherwise, it should optimize the property rights ofagricultural infrastructure, establish and perfect the related laws and regulations aboutPPP, transform the government functions to let it give full play its service functionsand finally set up the supervision mechanism of PPP supply process of agriculturalinfrastructure. Then the PPP mode can play the certain function on the supply ofagricultural infrastructure, improve the current situation of insufficient supply of theagricultural infrastructure and make the agricultural development more smooth andfaster.