A0958
Title: Effects of agricultural machinery purchase subsidy on the market structure of machinery operations
Authors: YunQi Wu - South China Agricultural University (China) [presenting]
Abstract: Cross-regional outsourced machinery service is an innovation explored in China's agricultural mechanization practices. However, with the implementation of the agricultural machinery purchase subsidy, local machinery operations began to occupy a dominant position, resulting in market share and operation scope shrinkage for COMS. To the best of knowledge, there is no previous literature empirically testing this phenomenon. Hence, the aim is to address this research gap in the literature. To explain the evolutionary law of the machinery operation market structure and the role of AMPS, the theoretical framework is first explored, including deductive induction reasoning and mathematical analysis, and then an empirical analysis is based on the panel data of 31 provinces of China over the 2000-2019 period. The results show that: First, since the implementation of AMPS, the relationship between COMS and LMO has changed from complements to substitutes. Second, an increase in the AMPS amount directly leads to a proportional decrease in COMS of the according province. Finally, heterogeneity analysis reveals that AMPS only affects the market structure of agricultural machinery operation in the tilling and sowing phases but not in the harvesting phase.
