Research On The Impact Of Government Subsidies On The Competitiveness Of Agricultural Leading Enterprises

Agricultural leading enterprises is the important carrier and leading force for solving the contradiction between small farmers and big market, and for achieving agricultural industrialized operation.In order to support the modernization development of agriculture, government issues a series of benefiting farmer’s policies on finance and fiscal to promote the development of leading agricultural enterprise so as to bring agricultural development in our country.With nation’s financial subsidies on leading agricultural enterprise gradually expands,people pay more and more attention to the benefits brought by leading enterprises.Therefore, it has important meaning for studying government subsidy’s influence on leading agricultural enterprise’s competitiveness.Based upon relevant theories on government subsidy and enterprise competitiveness, this paper conducts qualitative analysis on government subsidy’s influencing mechanism on leading agricultural enterprise competitiveness and proposes research assumption. Secondly, based on the theory of Jin Bei competitiveness and the existing research results, this paper constructs evaluation system of four factors influencing comprehensive competitiveness, including operation ability, management ability, development innovative ability and social contribution ability. It also sets up respective detailed evaluation indicator in the four influencing factors, uses principal component analysis to get comprehensive competitiveness and factor score so as to evaluate current status and subsidy situation of leading agricultural competitiveness. In the empirical part, through the quantitative analysis of the impact of government subsidy policy on the competitiveness of agricultural leading enterprises, this paper judges whether the national subsidy achieve anticipated effect or not.The result of empirical analysis is that government subsidy has significantly positive influence on the competitiveness of agricultural leading enterprises, but this effect is not stable and continuous;Government subsidies lagging one year has positive correlation relationship on leading enterprise competitiveness, but not significant;Government subsidies has no significantly positive influence on later-period enterprise competitiveness, and may have negative effect. Compared to state-owned enterprise, private enterprises to obtain government grants played a more significant effect.It concludes that the government subsidies has certain effect on leading agricultural enterprise, but has not reached the optimal effect. Therefore, this paper proposes several suggestions regarding government subsidy policy.This paper thinks that government shall adopt diversified support, emphasize indirect support and conduct strict supervision on funds use of enterprise. Agricultural enterprises themselves should also be involved in the market actively, working hard to improve their core competitiveness and not to rely Government subsidies.