Financial Support Efficiency Of Agricultural Modernization In Guangdong Province: An Empirical Study

Agriculture isfoundational industry that support the national construction and economic development.Agricultural modernizationis the direction of modern agriculture development and key of solving three rural issues.However,most of the theoretical studies remain on traditional explanations or policy recommendations for government agencies and ignore its financial support efficiency.In fact,there is growing evidences that financial support will directly influence the development of industry and the readjustment of industrial structure.However,there are still many shortcomings of financial support of agricultural modernization in Guangdong province.Therefore,the research of agricultural modernization from the perspective of financial support is beneficial to realizing of torural vitalization strategy and accelerating the formation of reginal advantages and the new pattern of rural economic in Guangdong province.Based on the theory of financial support,this article attempts to inreoduce it to the research of agricultural modernization.First,based on the related literatures of industrial economy,institutional economy and finance,I establish a theoretical analysis framework of financial support efficiency of agricultural modernization and find that the financial support theory of agricultural industry can be divided in to agricultural credit subsidy theory,rural financial market theory and incomplete competition market theory;Then,the analysis of the present situation of financial support for agricultural modernization in Gangdong province can help us understanding intuitively the efficiency of financial support of agricultural modernization.I find that though the financial support in the agricultural modernization of Guangdong province has made some progress,there are still many deficiencies,such as the decrease of strength of financial support,insufficient amount of financial support,single product of financial institution,inflexible loan term and interest rate and the absence of agriculture insurance,etc.Next,using unique data from cities’ macroeconomic data of Guangdong as the research sample,this article empirically investigates financial support efficiency of agricultural modernization in Guangdong province and I find that financial support have a positive influence on agricultural modernization.An increase of 1% in finance support increases the agricultural labor productivity and per capita power of agricultural machinery by about 1.059% and 1.862%.Finally,this article which aims at promoting agriculture modernization of Guangdong province proposes some policy recommendations to the government,financial institution and agricultural producer.There research of this articleprovides a reference for financial support efficiency of agricultural modernization.