Quantitative Assessment of the Impact of China's Direct Grain Subsidies on Grain Yield--Based on the Empirical Analysis of Panel Data Pertaining to 29 Provinces in the Period 2004-2007

We build the influence function empirical model of China's grain production at the present stage in view of the factors influencing direct grain subsidies,using Cobb-Douglas production function model.And we estimate the elasticity coefficient of impact of China's direct grain subsidies on grain yield,using the panel data pertaining to 29 provinces in the period 2004-2007;comparatively analyze the validity and limitation of policy factors of direct grain subsidies on China's grain yield.The results show that at the present stage,the elasticity coefficient of impact of China's direct grain subsidies on grain yield is 0.002 3,and under the existing subsidy system and level,direct grain subsidies play a positive role in increasing grain yield,but the role is limited;the elasticity coefficient of impact of the food price on grain yield is much larger than that of impact of direct grain subsidies on grain yield.Therefore,the government should strengthen and improve direct grain subsidy policies;in the mean time,pay full attention to the use of market mechanism to consolidate the basic role of the food price in promoting food security to a great extent.

Analysis of the System of Direct Subsidy for Grain Production in China

This paper introduces the status quo of the system structure of direct subsidy for grain production in China,and analyses the function and essence of direct subsidy for grain production in China as follows:the function of direct subsidy for grain production in China is to protect and promote the development of food industry,ensure food supply and national food security,protect grain growers' interests,and maintain the dominant position of national food trade;the essence of direct subsidy for grain production is the compensation for grain producers' reasonable interests,the compensation for positive externality of grain production,and social costs of adjusting equilibrium between food supply and demand.We discuss the problems existing in the system of direct subsidy for grain production in China and put forward corresponding countermeasures as follows:first,adhere to improving synergetic system of direct subsidy for grain production;second,adjust the direct subsidy method of grain production;third,establish long-term mechanism of subsidy for grain production;fourth,promote the information-based service level of the system of direct subsidy for grain production.