Analysis Of Rural Land Circulation Effects On Agriculture Economic Growth In Wuhan

Considering the sustainable development of agriculture and the shortage of food, the policy of rural agriculture circulation has received widespread attention. Wuhan, as a pilot city, also got widely attention. In order to fully investigate the status quo in Wuhan, General Secretary of Xi Jinping has visited the Wuhan Agricultural Assets and Equity Exchange in July 2007. Therefore, the analysis of rural land circulation effects on agriculture economic growth in Wuhan has profound meanings. At first, it can extent the research of the effects of rural land circulation on agriculture economic growth in limited districts. Furthermore, it would offer some advice to the policy maker relating to some policies on rural land circulation.In order to shed more lights on these effects, the research has based on the panel data from 10 districts in Wuhan between the period of 2002 and 2013. Combined with the economic growth theory, the paper has selected the cultivated area, the number of labor force, the total power of agriculture machinery and the fertilizer input as the explanatory variables. By using the Stochastic Frontier Analysis and the Trans log function, this paper could calculate the proportion of technical inefficiency in total factor productivity. Other than traditional economic growth models, this paper has focus on the effects of the technical inefficiency in stochastic error term. The finding shows that the difference between the real output and the potential maximum output of the 10 districts in Wuhan from 2002 to 2013 is mainly stem from the technical inefficiency. In the meantime, there is a positive relationship between the agriculture output and the cultivated area, labor force, fertilizer input In addition, the influence of policy of rural agriculture circulation on technical efficiency needs further analysis. The policy of rural agriculture circulation was set as a dummy variable which using the established time of Wuhan Agricultural Assets and Equity Exchange (2009) as the cutting-off point. The finding illustrates that the policy of rural agriculture circulation could stimulate the technical efficiency. With the theoretical analysis, the findings are attempt to prove the fact that the reasonable policy of rural agriculture circulation could promote the sustainable development of agriculture.Though the theoretical and empirical analysis, this paper proposed some advice to the relevant departments and provided directions to the further research.