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Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China

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  • Yi, Fujin
  • Sun, Dingqiang

Abstract

This study examined the effects of China’s grain subsidy program, the largest food self-sufficiency project in the developing countries, on grain-sown areas within a context of liquidity constraints. A large household level panel was used to evaluate how the subsidy affects the cultivation schedule of farm households through the relaxation of households’ liquidity con¬straints. Results suggest that in general, the grain subsidy program significantly improved farm households’ grain planting areas for liquidity-constrained households. This finding provides a more comprehensive understanding of the effects of China’s grain subsidy than previous studies

Suggested Citation

  • Yi, Fujin & Sun, Dingqiang, 2014. "Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169779, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:169779
    DOI: 10.22004/ag.econ.169779
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    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Food Security and Poverty; Land Economics/Use;
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