Abstract:

In the era of post international financial crisis, investment policy on agriculture industry is still one of the key policies in China. In order to support agriculture industry investment policy’s formulation, we improved related researches from single-regional and partial equilibrium framework to multi-regional and general equilibrium framework, and we constructed a multi-regional CGE model of China. We analyzed a typical policy scenario. And then We suggested that China should continue to increase investment in agriculture, but at the same time, China should protect urban employment and welfares of the resigned people in the rural area.