Research On The Impact Of Agricultural Machinery Purchase Subsidies On China's Agricultural TFP

With the continuous progress of modernization in China,the agricultural labor force continues to shift to cities,resulting in a decline in the number of agricultural labor forces on the one hand and an aging and feminizing structure on the other.Facing the new trend of changes in the supply of agricultural labor,we must vigorously promote the level of mechanization of agricultural production in China,which is an important prerequisite for achieving agricultural modernization and improving agricultural production capacity.In order to support the development of agricultural mechanization,China promulgated the "Agricultural Mechanization Promotion Law" in 2004 and implemented a subsidy policy for the purchase of agricultural machinery.Since the implementation of this policy in 2004,the pace of China's mechanization construction has accelerated significantly and has achieved significant results.From 2004 to 2016,the central government 's investment in agricultural machinery purchase subsidies increased from 78 million to 23.7 billion yuan;China 's total agricultural machinery power increased from 641 million kilowatts to 972 million kilowatts;the comprehensive mechanization level of major crops increased from 34.3% to 65.2 %,almost doubling.As of 2016,China's main agricultural machinery had 120 million units at the end of the year,an increase of 50% compared with 2004.Does the subsidy for agricultural machinery purchase have a significant effect on China's agricultural development? Specifically,did agricultural machinery purchase subsidies promote the growth of China's agricultural total factor productivity?As the main source of grain production in China,the main grain production areas provide important guarantees for China's food security.Therefore,it is also an area where agricultural machinery purchase subsidies are relatively concentrated.The implementation of agricultural machinery purchase subsidies in major grain production areas has a certain degree in China.Therefore,it is of theoretical and practical significance to study the impact of agricultural machinery purchase subsidies on agricultural total factor productivity in major grain producing areas.Based on a review of the implementation status of agricultural machinery purchase subsidies in major grain producing areas,this paper builds an analytical framework based on the theory of weak agriculture,public product theory,and agricultural investment,and summarizes the main grain producing areas in China from 2004 to 2016.Panel data,using the DEA-GM index to measure its agricultural total factor productivity,and studying the impact of agricultural machinery purchase subsidies on its agricultural total factor productivity.The results of the study found that:(1)The technological efficiency values,technological progress values,and total factor productivity of the provinces in the main grain production areas have maintained high levels,and from the perspective of time evolution,the total factor productivity of agriculture in the main grain production areas in China has shown a relatively stable performance.Growth trend.(2)Agricultural machinery purchase subsidies have a significant positive impact on agricultural technology and technological progress and agricultural total factor productivity in the main food producing areas of China,but they have not had a significant impact on technological efficiency.Moreover,agricultural machinery purchase subsidies have a significant effect on the agricultural total factors in the main food producing areas.The impact of productivity is mainly transmitted by increasing the level of mechanization.(3)The agricultural total factor productivity in the main producing areas is also affected by natural disasters,urbanization levels,openness,agricultural economic levels,and highway infrastructure.Under the combined effect of various factors,there is a certain difference in the agricultural total factor productivity of the provinces in the main producing areas.Based on the above research conclusions,in order to optimize the implementation of agricultural machinery purchase subsidy policies and promote the growth of agricultural total factor productivity in the main food producing areas,the following policy recommendations are proposed:(1)Increase financial investment.(2)Establish supporting financial support mechanisms.(3)Optimize the policy operation mechanism and improve the efficiency of policy implementation.