A Research Of The Effect Of Partial Decentralization Direct Subisdy To Major Grain-producing Areas

The grain industry is the lifeline to the stability of the economy.Nowadays our country is in a special time of economic system transformation,grain industry plays a very important role to the safe of our country.in order to ensure grain security,and reverse the decline trend of grain production,our country put grain direct subsidy policy into effect in 2004 to improve income levels of the farmers and stimulate grain production.however,the implement of direct subsidy has many differences in major grain-production areas and non-major grain-production areas.The thirteen provinces of major grain-producing areas uses the partial decentralization grain direct subsidy and the other eighteen provinces take the classical fiscal decentralization direct subsidy as their main subsidy.However,what is the effect of partial decentralization Direct Subisdy To Major Grain-producing Areas?And is there any difference of these two subsidy policy between major grain-producing areas and non-major grain-producing areas?How to polish up the direct subsidy policy of our country?These question still need further reesarch.Based on these,this paper will analysis partial decentralization direct subsidy from both normative and empirical ways to measures the effect to major grain-producing areas.Firstly this article teases the history of direct subsidy of our country,and reviews the historical vicissitude,expounds the necessity for direct subsidy,and briefly introduce the current situation of direct subsidy system in our country.focuses on the current suitation of the partial decentralization direct subsidy in major grain-producing areas.Secondly this article uses synthetic control method to analysis the effcet of partial decentralization direct subsidy to farmers and grain productions from 2004 by the case of Jiangsu province in a empirical method.Use the eighteen non-major grain producing areas provinces to simulate the condition of taking classical fiscal decentralization direct subsidy of Jiangsu,and assess the effect of partial decentralization direct subsidy by comparison.At last,this article will give some reasonable advices according to the results,including explicit the core target of direct subsidy,improve the level of direct subsidy,change the way of distribution of the money and so on,this will do help to protect grain security and improve the income of the farmers.