The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China’s Poverty-Stricken Villages

Chengyou Li, Zhouhao Sha, Xiaoqin Sun and Yong Jiao ()
Additional contact information
Chengyou Li: The Center for Economic Research, Shandong University, Jinan 250100, China
Zhouhao Sha: School of Statistics and Mathematics, Shandong University of Finance and Economics, Jinan 250014, China
Xiaoqin Sun: School of Finance, Shandong University of Finance and Economics, Jinan 250014, China
Yong Jiao: College of Economics & Management, Shandong University of Science and Technology, Qingdao 266590, China

IJERPH, 2022, vol. 19, issue 21, 1-17

Abstract: This paper builds a theoretical model based on a representative peasant household in the neoclassical model, comprehensively considers three types of farmer households in China, and evaluates the effects of the agricultural subsidy policy under equilibrium conditions. Based on the two bottom lines of guaranteeing China’s grain security and ensuring no large-scale return to poverty, this paper uses 2010, 2012, and 2014 tracking survey data from the Mutual Aid Fund for Poverty-Stricken Villages in China to construct an econometric model to evaluate agricultural subsidy effectiveness from the three aspects of farmers’ total sown area, total grain output, and total income. The research draws the following conclusions: (1) Agricultural subsidies can significantly increase the sown area, grain production, and total income of farmers in poverty-stricken areas, which is conducive to improving the farmers’ comprehensive capacity for grain production as well as income, and this conclusion remains valid after performing a series of robustness tests and solving endogeneity problems. (2) The effects of the agricultural subsidy policy are affected by natural conditions, economic development levels, and functional orientation of grain production in different regions, and they have divergent influences on farmers’ total sown area, total output, and total income. (3) Agricultural subsidies boost farmers’ willingness to cultivate grain, reduce land abandonment, and increase the total sown area, total output, and total grain income. The willingness to cultivate grain is an important mechanism that affects the effectiveness of the agricultural subsidy policy.

Keywords: agricultural subsidy; effect assessment; poverty areas; panel data (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/1660-4601/19/21/13797/pdf (application/pdf)
https://www.mdpi.com/1660-4601/19/21/13797/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijerp:v:19:y:2022:i:21:p:13797-:d:951268

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().