Study on the effect of minimum purchase price policy on China's wheat production

초록

Wheat is one of the three main grain crops in China and its production plays an important role in industrial development and the daily lives of the Chinese people. In China, wheat production accounts for about 22% of total grain production, and thus, greatly contributes to Chinese food security. The implementation of the minimum purchase price policy for wheat was designed to increase wheat production. According to statistics, after the implementation of this policy, wheat production increased from 108.466 million tons in 2006 to 133.596 million tons in 2019, but it is not known to what extent this policy contributed to wheat production. Using the panel data of 15 major wheat-producing provinces in China from 1998 to 2019, we used propensity score matching and difference-in-differences methods (PSM-DID) to conduct robustness and empirical tests on the impact of the Chinese minimum purchase price policy on wheat production. After controlling for other factors that affect wheat production, our results showed that implementation of the policy significantly increased wheat production by 76.89%.

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