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Can Market-Oriented Reform of Agricultural Subsidies Promote the Growth of Agricultural Green Total Factor Productivity? Empirical Evidence from Maize in China

Author

Listed:
  • Feng Ye

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China)

  • Zhongna Yang

    (Department of Economics and Management, Tarim University, Alar 843300, China)

  • Mark Yu

    (Division of Agribusiness and Agricultural Economics, Department of Agricultural and Consumer Sciences, Tarleton State University, P.O. Box T-0040, Stephenville, TX 76402, USA)

  • Susan Watson

    (New College, University of North Texas, 1155 Union Circle, Denton, TX 76203, USA)

  • Ashley Lovell

    (Division of Agribusiness and Agricultural Economics, Department of Agricultural and Consumer Sciences, Tarleton State University, P.O. Box T-0040, Stephenville, TX 76402, USA)

Abstract

Green agriculture is the future of agricultural development. However, there has been little attention paid to the relationship between market-oriented reform of agricultural subsidies and green agricultural development. Based on the quasi-natural experiment of China’s maize purchasing and storage policy reform (MPSR), this paper studied the impact of agricultural subsidy market-oriented reform on agricultural green development from the perspective of green total factor productivity using the difference-in-difference model. The results showed that the green total factor productivity (MGTFP) of maize in China from 2010 to 2020 presented an upward trend with an average annual growth rate of 0.70%, which mainly depended on the contribution of green technical progress in maize. MPSR could promote the improvement of MGTFP, but the result had a hysteresis effect. In addition, MPSR had a significant promoting effect on green technical change but had no significant impact on green technical efficiency. The policy implication of this paper is that developing countries should actively promote the market-oriented reform of agricultural subsidies to promote green agricultural development.

Suggested Citation

  • Feng Ye & Zhongna Yang & Mark Yu & Susan Watson & Ashley Lovell, 2023. "Can Market-Oriented Reform of Agricultural Subsidies Promote the Growth of Agricultural Green Total Factor Productivity? Empirical Evidence from Maize in China," Agriculture, MDPI, vol. 13(2), pages 1-20, January.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:2:p:251-:d:1042331
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    2. Wen Xiang & Jianzhong Gao, 2023. "From Agricultural Green Production to Farmers’ Happiness: A Case Study of Kiwi Growers in China," IJERPH, MDPI, vol. 20(4), pages 1-25, February.

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