Research On The Impact Of Agricultural Subsidies On The International Competitiveness Of China's Agricultural Products

Since joining the WTO in 2001,China's foreign trade activities between countries have also been more active.In order to support and protect the sustainable development of China's agriculture and improve the international competitiveness of China's agricultural products,China has also adopted a series of agricultural support policies,and the level of total agricultural support is among the highest in the world.On the other hand,with the deepening of trade globalization,the scale of China's agricultural products' foreign trade has also expanded year by year,but the import value of our agricultural products far exceeds the export value of our agricultural products,that is,there is a huge agricultural product trade deficit in China and China's agricultural products basically do not have international competitiveness.According to statistics,the trade deficit of China's agricultural products in 2001 was-3499 million U.S.dollars,and it increased to-104,963 million U.S.dollars in 2017,and there is even a trend of further expansion.Therefore,while the scale of agricultural subsidies and the trade deficit in China continue to expand,people have begun to attach importance to the relationship between agricultural subsidies and the international competitiveness of China's agricultural products,have started to think about the reasons for the decline in the international competitiveness of China's agricultural products,and have begun to explore whether agricultural subsidies are an important reason that affects the international competitiveness of China's agricultural products.Based on the above,this paper selects agricultural subsidies and the international competitiveness of China's agricultural products as the research object and is guided by Porter's "Diamond" Model Theory.Based on relevant data on China's agricultural production and foreign trade in agricultural products from 1995 to 2017,this paper uses the principal component analysis method to empirically analyze the relationship between agricultural subsidies and the international competitiveness of agricultural products.Finally,it is concluded that the producer support policy(PSE)with a " yellow box" characteristic and the general service support policy(GSSE)with a "green box" characteristic will both improve the international competitiveness of China's agricultural products,but the former is less effective than the latter.The research content is as follows: Chapter 1 is the introduction,which summarizes the domestic and foreign literature reviews,and introduces the research background,significance,methods,and innovations of this paper;Chapter 2 is the theoretical basis.It introduces the impact mechanism of agricultural subsidies on the international competitiveness of agricultural products.It mainly includes the element status,demand status,related and supporting industries and corporate strategy and other aspects in Porter's "Diamond" Model Theory;Chapter 3 describes the status of China's agricultural subsidies,agricultural import and export trade,and international competitiveness of agricultural products;Chapter 4 is about empirical analysis,which is guided by Porter's "Diamond" Model Theory.Using principal component analysis,23 years of time series data are selected to study the effects of agricultural subsidies on the international competitiveness of China's agricultural products.Chapter 5 is conclusions and policy recommendations.It summarizes the full text and put forward policy recommendations in line with the empirical results in accordance with the provisions of the WTO Agricultural Agreement.This article hopes to put forward an agricultural subsidy policy that is in line with China's national conditions through theoretical and empirical analysis,and effectively optimize agricultural subsidy policies,so as to improve the international competitiveness of agricultural products and achieve sustainable and healthy development of China's agriculture.