Research On The Influence Of Domestic Agricultural Support Policies On Agricultural Export Competitiveness In China

Since China joined the World Trade Organization in 2001,the trade scale of agricultural products has been expanding.But the problem with that: trade deficit of agricultural products has been expanding,the export competitiveness has been decreasing,and agricultural products are in a disadvantageous position in the international market.In the face of insufficient cultivated land per capita,high agricultural cost production,low quality of agricultural products,trade barriers in developed countries and insufficient protection of border measures such as tariff quotas,China has taken certain domestic support measures for agriculture.At present,the total amount of domestic support for agriculture ranks among the top in the world,but there are still deficiencies in the agricultural subsidy rate and policy structure.Therefore,it is necessary to explore the impact mechanism of different domestic support policies for agriculture on the export competitiveness of agricultural products,so that provide better theoretical guidance for domestic agricultural support policies and improve the international status of China’s agricultural products.This paper firstly expounds the implementation of agricultural domestic support and the current situation of agricultural trade,then analyzes the impact mechanism of different agricultural domestic support policies on the export competitiveness of agricultural products from the perspectives of agricultural product price,quality and output.Finally,the paper combines the classification standards of OECD and WTO.According to the classification of whether it distorts trade,the agricultural domestic support policies are divided into two categories: one is less distorted support subsidies.The other one is protective subsidies with a large degree of distortion.Using the annual relevant data of China from 1995 to 2019,this paper makes an empirical analysis on the above two types of agricultural support policies and net export ratio to expound the relationship between variables through Granger causality test and generalized impulse response function analysis.The results show that the export competitiveness of China’s agricultural products is decreasing every year,the export of agricultural products is mainly concentrated in labor-intensive products,and the producer support accounts for a high proportion of the total amount of agricultural domestic support policies.The direct guiding role of the government on agricultural production activities,farmers’ income and agricultural product prices is more significant,but it is not strong in the world,and the policy structure has room for further optimization.In addition,Granger causality test shows that supportive subsidies are the long-term Granger reason for the export competitiveness of agricultural products,and the effect is positive,while protective subsidies are not the short-term and long-term Granger reason for the export competitiveness of agricultural products.Relying on the practice of distorting the domestic price system cannot improve the export competitiveness of agricultural products,but improving the production factors such as labor,capital,land,and technology can enhance export competitiveness in the long run.Through the above analysis,this paper hopes to put forward agricultural domestic support policies in line with the actual national conditions and optimize the policy structure,so as to enhance the export competitiveness of agricultural products and ensure the stable development of China’s economy.In view of this,this paper puts forward three countermeasures and suggestions: improving the price formation mechanism of agricultural products,constructing the risk prevention mechanism of agricultural trade,and strengthening the general service support for agriculture.