The Relationship between Industrialization and Grain Production: Basis Underlying the Industrialization of Core Grain-producing Areas

Abstract

Abstract:

Food security has always been a major strategic focus in China's economy development, social stability and national independence. Accordingly, whether the core grain-producing provinces should vigorously pursue the industrialization has become a bone of contention. This paper firstly gives the theoretical assumptions by describing some domestic and foreign phenomenon, namely, under certain conditions industrialization can promote the improvement of food production. Next, this paper establishes the mathematical and econometric models, and carries out the empirical study on the base of 1995-2003 panel data of 6 core grain-producing provinces. Results show that, Henan, Liaoning, Jilin and Heilongjiang lie in the take-off stage where industrialization can improve grain yields, and Hebei and Shandong lie in the advanced stage where their industrialization level is far from threshold value to maximize grain yields. Therefore, all the six provinces should continue to promote the industrialization process. This paper proves that at different levels the industrialization may increase or decrease grain production.

Key words: industrialization, grain production, relationship, threshold value

Wang Jing, Yang Hongen, Zhang Zhiming, Tian Xiaoyan. The Relationship between Industrialization and Grain Production: Basis Underlying the Industrialization of Core Grain-producing Areas[J]. , 2015, 27(8): 47-55.

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