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Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China
- Yi, Fujin, Sun, Dingqiang, Zhou, Yingheng
- Food policy 2015 v.50 pp. 114-124
- developing countries, farms, households, planting, China
- This study examined the effects of China’s grain subsidy program, the largest food self-sufficiency project of all developing countries, on grain-sown areas within the context of liquidity constraints. A large household-level panel was used to evaluate how the subsidy program affected the cultivation schedule of farm households through the relaxation of households’ liquidity constraints over a given period. Results suggest that, in general, the grain subsidy program improved farm households’ grain planting areas in liquidity-constrained households. This finding provides a more comprehensive understanding of the effects of China’s grain subsidy than previous studies have.