Abstract
In the pursuit of high-quality agricultural development and rural vitalization, China has embarked on an ambitious journey with its Agricultural Product Geographical Indication Program. This research paper delves into the multifaceted effects of this policy initiative, focusing on the dynamic Yangtze River Delta region. The study employs a robust difference-in-differences (DID) model to analyze the policy’s net impact on rural residents’ income within Jiangsu, Zhejiang, and Anhui Provinces from 2017 to 2020. Our findings reveal that the program implementation has yielded tangible benefits, significantly increasing rural residents’ per capita disposable income in these provinces. This positive outcome can be attributed to the program’s funding allocation, accelerating agricultural infrastructure development, enhancing product productivity and quality control. Consequently, this amplifies the market premium effect, contributing substantially to income growth. However, the research also underscores the importance of considering regional heterogeneity. While Jiangsu and Zhejiang Provinces have experienced significant gains, Anhui Province lags due to varying resource endowments and development stages. Moreover, the time-lagged effect of policy implementation plays a role in these disparities. Based on these insights, we propose a set of policy recommendations. First, continued implementation of the Agricultural Product Geographical Indication Program should be prioritized, focusing on enhanced funding management and multi-party participation. Second, harnessing regional cooperation and resource sharing is vital for optimizing policy outcomes. Finally, the establishment of a comprehensive risk prevention and control mechanism is crucial for the industry’s resilience in the face of unforeseen challenges. This research provides empirical evidence of the program’s economic benefits and valuable policy implications for China’s journey towards high-quality agricultural development and rural prosperity, aligning with the overarching goals of innovation, entrepreneurship, and societal progress.
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Notes
Since most parts of Shanghai are metropolitan, villages only take up a very small percentage. (Even though rural areas take up a large percentage in Qingpu District and Congming District, these districts are not comparable with counties in Jiangsu, Zhejiang, and Anhui.) Thereby, to ensure the quality of data, we choose some cities from Jiangsu, Zhejiang, and Anhui in the Yangtze River Delta city cluster as research objects.
Huoshan News Network, Huoshan Mengya Geographical Indication Protection Program is Taking Effect, Retrieved from http://www.huoshannews.com/system/2021/07/22/011885793.shtml on July 22, 2021, and March 30, 2022.
Ullah, Subhan; Zaefarian, Ghasem; Ullah, Farid. How to use instrumental variables in addressing endogeneity? A step-by-step procedure for non-specialists[J]. Industrial Marketing Management. 2021.
In 2016, the National Development and Reform Commission issued Development Planning for Yangtze River Delta City Cluster as a major guidance for the integrated development of the Yangtze River Delta city cluster.
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Hongkai Qie was responsible for study conception and design. Hui Chen was responsible for data collection and analysis. Yong Lu was responsible for interpretation of results. Xiaoyu Zhao was responsible for the project administration. Zhiwei Wang was responsible for draft manuscript preparation. All authors reviewed the results and approved the final version of the manuscript.
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Qie, H., Chen, H., Lu, Y. et al. Evaluating the Impact of Agricultural Product Geographical Indication Program on Rural Income: A Case Study of the Yangtze River Delta Region in China. J Knowl Econ (2024). https://doi.org/10.1007/s13132-024-01935-8
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DOI: https://doi.org/10.1007/s13132-024-01935-8