Study On The Effect Of Rice Subsidy Policy On Its Total Factor Productivity

In order to increase farmers' income and ensure national food security,China has carried out agricultural subsidy policies since 2004,such as direct subsidies to grain producers,subsidies for growing superior grain cultivars and general subsidies for agricultural production supplies.The purpose of this paper is to test whether rice subsidy policy can promote TFP.Based on the previous research results,this paper explores the background,objectives and current situation of China's Rice Subsidy Policy,and then uses the DEA-Malmquist index method,it calculates the total factor productivity of rice and its composition in China during 1993-2014,and the effect of rice subsidy policy on its TFP is analyzed by DID analysis.Research findings: After the implementation of rice subsidy,the performance of different types of rice production is not as good as expected.Rice subsidies has a significant effect to promote on the total factor productivity of medium indica rice,late indica rice and japonica rice,but has a negative impact on the total factor productivity of early indica rice,this is mainly due to the technological progress caused by policies;Direct subsidies to grain producers,general subsidies for agricultural production supplies and subsidies for growing superior grain cultivars have different influence on the effect of various types of rice?Separately,Direct subsidies to grain producers policy has no significant effect on TFP of the total rice,which has a positive effect on TFP of the early indica rice,late indica rice and japonica rice,and which has a negative effects on TFP of the medium indica rice,these effects are mostly caused by technological progress;General subsidies for agricultural production policy has a negative impact on all kinds of rice TFP,leading to the main differences in these effects;Subsidies for growing superior grain cultivars policy has no significant effect on TFP of early indica rice,late indica rice and japonica rice,but there were negative effects on TFP of the total rice,which has positive effects on TFP of the medium indica rice,all of which were influenced by technological progress;In addition,general subsidies for agricultural production supplies can affect the role of other policy factors play,etc.According to the research results,this paper puts forward some suggestions on how to improve China's rice subsidy policy.