Research On The Market Efficiency Of Agricultural Subsidies

Agriculture is the basic sector of the national economy.Agricultural subsidy is the most important and commonly used tool in a government's agricultural policy.Also the agricultural subsidy policy is closely related to the development of the national economy.Up to now,our country has fully entered the stage of industry feeding back to agriculture,so he intensity of agricultural subsidies will be gradually increased in the future.Therefore,it is necessary to study the market efficiency of agricultural subsidy policy and then find a more suitable agricultural subsidy policy.The agricultural production conditions of our country are relatively backward,and the peasants' income is relatively low,which have directly led to the low efficiency of agricultural production in our country.Therefore,we can study the market efficiency of China's agricultural subsidies from two aspects,which is raise agricultural production efficiency and increase farmers' income.So we can find out the short board of China's agricultural subsidies and then maximize the role of agricultural subsidy funds.In the study,this paper combines the economic theory with empirical analysis.The necessity of agricultural subsidies is analyzed from the economic theory and international trend of agricultural subsidies,and the reality of agricultural subsidies is analyzed from the current situation of agricultural subsidies in China.Finally,two economic models are used to discuss the market efficiency of agricultural subsidies in China for increasing agricultural production efficiency and increasing farmers' income.When we study agricultural subsidies to improve the efficiency of agricultural production,the Cobb-Douglas production function is introduced.Empirical analysis shows that the input of agricultural floating capital is more suitable for the current agricultural production conditions in China,while fixed capital and labor force have little effect on the efficiency of agricultural production.When we study the market efficiency of increasing farmers' income,the data envelopment model is introduced.The analysis shows that the technical input efficiency of agricultural subsidies is relatively high,but the scale efficiency needs to be improved.So,we can draw a conclusion that the market efficiency of agricultural subsidies can be improved by improving the investment of agricultural funds and adjusting the allocation of agricultural subsidies.