Study On The Effect Of Agricultrual Credit On Total Factor Production Of Apple Industry

Agriculture plays a fundamental role in China’s economy, and the apple industry is one of typically pillar industries in agriculture production. Increasing total factor productivity of apple industry is not only an important way to develop health and orderly economy and achieve sustainable development, but also a great implication for the transformation of agriculture development from extensive to intensive method. Under the background of a new era of rural economies, the research on the relation and interaction of agricultural credit and total factor productivity of agriculture is of important meaning to explore more effective path for rural financial supporting. Based on theoretical analysis on the elation and interaction of agricultural credit and total factor productivity of agriculture, using the investigation data from the apple production areas in the Northwest Loess Plateau, this paper gave an empirical analysis on how the agricultural credit influence on the total factor productivity of agriculture, and then put forward some corresponding policy recommendation.First of all, this paper reviewed the evolution of the theories of total factor productivity both in China and abroad, simultaneously, codified the development of rural financial and agricultural credit, and then explored the relation and interaction of agricultural credit and total factor productivity of agriculture.Secondly, according to the field research in the apple production areas in the Northwest Loess Plateau, this paper made a detailed description on the time of investigation, the sample districts, the sampling method and design of questionnaire. Based on the data from this field research, this chapter gave an analysis of the status of agricultural credit and total factor productivity of agriculture.Subsequently, by the basic theory of the DEA-Malmquist index, this paper calculated the total factor productivity of agriculture based on the data and statistics, and then used Hansen’s panel threshold regression model to make a empirical research on how the agricultural credit influence on the total factor productivity of agriculture. The results showed that: when the human capital of the apple growers is in the low level, there is no significant effect between agricultural credit and total factor productivity of agriculture; when the human capital of the apple growers is in the middle level, the agricultural credit would increase the total factor productivity of agriculture mainly through TECHCH; while the human capital of the apple growers is in the high level, the agricultural credit would significantly increase the total factor productivity of agriculture especially through EFFCH.Finally, given all above discussion, this paper put forward some corresponding policy recommendation about allocation of agricultural credit, China’s rural finance policy and the ways to increase the total factor productivity of agriculture, especially the total factor productivity of apple industry.