Does Formal Financial Support for Agriculture Foster New Agricultural Business Entities?An Examination of the Incremental Loan Reward Pilot for Agricultural Loans
Cultivating new agricultural business entities is a crucial strategy for achieving the modernization of agriculture in China.This study focuses on the incremental loan reward policy pilot for agricultural loans and analyzes how formal financial support affects the development of these entities,utilizing data on newly registered agricultural business entities across various coun-ties from 2006 to 2021.The findings indicate that the incremental loan reward pilot significantly increases the number of new agricultural business entities within counties.The effectiveness of this policy diminishes with the advancement of urbanization and industrialization but strengthens with increased local agricultural fiscal spending.It is also constrained by the ratio of reward fun-ding shared between central and local governments.Further investigation reveals that by fostering new agricultural business entities,this policy significantly enhances the grain production of the counties.Therefore,fiscal-guided formal financial support for agriculture is effective in cultiva-ting new agricultural business entities,although it is necessary to manage the allocation of reward expenditures between central and local authorities properly.
financial support for agriculturenew agricultural business entitiesfood securityincremental loan reward pilot for agricultural loans
NETL
NSTL
万方数据
