A Comprehensive Analysis of China Regional Agriculture Based on Efficiency, Advantage and Development Strategy

Abstract

Agriculture is a traditional weak industry in most minds, so fiscal support is necessary for most countries and regions, but result in different efficiency. For countries like China with such a huge area, agriculture development for different region is extremely imbalanceable with different comparative advantage. This paper first gauges the efficiency value of agriculture fiscal support with the well-known Panel-Data Model for the dataset of 25 provinces in China in recent 25 years. Then we calculate agriculture advantage values of these 25 provinces from two angles—absolute advantage and comparative advantage. During discussion part, we comprehensively consider efficiency and comparative advantage of each province. And we try to classify these 25 provinces into 3 clusters after comprehensive considerations of the above aspects. Consequently, according to clustered results, the proposal for China agriculture development proposed by this paper will be that different province should be with different agriculture development strategy.