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The Effects of Agricultural R&D Investment and Environment Subsidies on Agricultural Production and Income in China

  • Journal of Asia-Pacific Studies
  • Abbr : JAPS
  • 2020, 27(1), pp.211-232
  • DOI : 10.18107/japs.2020.27.1.007
  • Publisher : Institute of Global Affairs
  • Research Area : Social Science > Social Science in general
  • Received : February 10, 2020
  • Accepted : February 27, 2020
  • Published : March 30, 2020

Lin Jin 1,  Lee Ki-Seong 2

1연변대학교 농림경제관리학과
2건국대학교

Accredited

ABSTRACT

Research and Development (R&D) investment in the agriculture has contributed not only to agriculture but also to economic growth across the country. In particular, it became the basis for national economic growth by providing labor to other industries through increased productivity of the agricultural sector. The importance of R&D in the agricultural sector is also being emphasized in preparation for the fourth industrial revolution, which has been highlighted recently. Agricultural R&D is directly related to the fourth industrial revolution in agriculture that utilizes big data, robots, artificial intelligence, and clouds. On the other hand, subsidies are considered the most widely used policy means. These subsidies affect domestic resource allocation, income distribution structure, and expenditure productivity regardless of specific policy areas, and also affect international competitiveness between trade and economic entities. The purpose of this paper is to examine the dynamic analysis of variables by establishing a quantitative model in terms of agricultural environment subsidies that represent the government’s role and agricultural gross agricultural product in light of the importance of R&D investment in Chinese agriculture. In conclusion, the agricultural R&D investment and agricultural environmental subsidies not only have a long-term positive effect on agricultural income, but also increase the agricultural income positively affect the level of agricultural mechanization. In other words, today’s agriculture is transforming into a science and technology-oriented agriculture, unlike the past resource-oriented agriculture, and agricultural technology will act as a catalyst that can replace the scarce resources that are obstacles to agricultural growth with abundant resources.

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