Impact of demonstration zone policy on agricultural science and technology innovation: evidence from China

This study investigates the impact of China's National Modern Agricultural Demonstration Zone policy on agricultural science and technology innovation using panel data from 696 regions between 2007 and 2017. Employing a difference-in-differences approach, the study finds that the policy significantly improves agricultural science and technology innovation, particularly in regions with high fiscal autonomy, western regions, and those with better transportation infrastructure. The mechanism analysis reveals that the policy's positive effects are primarily driven by increased financial resource allocation, enhanced financial support for agriculture, and improved human capital.

Nannan Wang, Dengfeng Cui