| In recent years controversy about the effect of pig subsidy policy is ceaseless. Taking Guangdong province as the case, this paper analyzes the effect of pig subsidy policy from various angles. The results show that subsidy can promote pig production, but lag effect is very evident and marginal effect is downward. Subsidy can significantly increase the scale of pig-breeding. For most pig farmers especially scatter-feed, subsidy has negative effect on their revenues. In the short term, subsidy can suppress the rising pig price. In order to improve the effect of subsidy policy, we suggest to increase subsidies, improve the subsidy way, clear responsibilities at all levels of government, formulate relative laws and regulations, improve management, support operating expenses. |
