Financial services, fiscal incentives and agricultural production efficiency: an empirical analysis based on system GMM method

From the theory of financial services and fiscal incentives affecting agricultural production efficiency, based on 30 areas of China between 2005 and 2013 provincial dynamic panel data, with the help of agricultural production efficiency calculated by the super efficiency DEA, using the system generalized method of moment estimator (GMM), the paper gives an empirical test of financial services and fiscal incentives affecting agricultural production efficiency. Results: Overall, financial services is beneficial to improve the agricultural production efficiency, but compared with the inland areas, the promoting impact of financial services in the coastal areas to agricultural production efficiency are more obvious; Fiscal incentives significantly improve agricultural production efficiency, the promoting impact of fiscal incentives in the inland areas is bigger than the coastal areas; The current agricultural production efficiency is strongly influenced by the previous; such as agricultural specialization level, agricultural disaster control, level of opening to the outside world that have different promoting degree to the agricultural production efficiency. Keywords: Agricultural production efficiency, Financial services, Fiscal Incentives, Super efficiency DEA, Generalized method of moment (GMM)