TITLE:
Optimal Choice of Cotton Subsidy Mode in China—Empirical Study Based on Principal Component Regression
AUTHORS:
Jianzhong Shi, Yuhong Li
KEYWORDS:
China; Cotton Subsidy; Import; Principal Component Regression
JOURNAL NAME:
Modern Economy,
Vol.4 No.7,
July
11,
2013
ABSTRACT: Adopt principal component regression for
researching the optimal subsidy mode of cotton production in China. The
result indicates that, from the perspective of economic stimulatory effect, the
optimal cotton subsidy in China
is farm chemical subsidy rather than seed subsidy. The reason is that there are
frequent pest disasters in cotton producing areas in China. So farm chemical subsidy is
the most important factor ensuring cotton production. Meanwhile, cotton varieties
must be optimized and improved to increase the ability to resist pests and
diseases, and the forecasting for pests and diseases in cotton production areas
must be enhanced, early warning mechanism and monitoring must be built, and in
addition, it is strongly recommended that if financial resources allow,
subsidies like seed subsidy, fertilizer subsidy, machinery subsidy and
irrigation subsidy could also put into effect in China.