Management Review

›› 2019, Vol. 31 ›› Issue (5): 267-276.

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Has Policy Support Improved the Performance of Agricultural Distribution?——Based on a Stochastic Frontier Analysis of 1298 Wholesalers

Hu Lifang1, Ye Zhonghua2, Liu Jiagui2   

  1. 1. Capital Finance Institute, China University of Political Science and Law, Beijing 100088;
    2. School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049
  • Received:2018-10-26 Online:2019-05-28 Published:2019-05-31

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Abstract:

It is urgent for rural revitalization strategy to solve the important issue of structural imbalance between supply and demand of agricultural products, and agricultural wholesale markets and wholesalers are the links between farmers and the market, and are the important carriers and focal points to realize the strategy of rural revitalization. Although the central and local governments have issued series of policies to support agricultural markets and wholesalers, the outcomes remain to be tested. Based on a survey data of 1298 wholesalers from 18 wholesale markets in 13 provinces of China, this paper uses the stochastic frontier approach to estimate the impact of different policy support on performance of wholesalers. The empirical results show that, first, among the financial and monetary policies, tax incentives could significantly improve performance, and loan subsidies could improve performance among those who need loans; second, infrastructure investment in distribution industry could improve technical efficiency, while the impact is not significant; third, marketing and training policy could only improve performance of large and medium-sized wholesalers. Therefore, the policy support for agricultural wholesalers should be targeted to elaborate policy effectiveness and promote the realization of the strategic objectives of rural revitalization.

Key words: agricultural distribution, wholesaler, performance, policy support, stochastic frontier