The rapid development of some sectors in the Chinese economy has crippled the growth of agribusiness. Agribusiness sector, which consists of various business activities, plays a vital role in socio-economic development in the areas of job creation, food production and rural development. However, the environmental issues that are more prevalent to the agro-industries thwart the growth and development of the sector. This study employs the quantile regression approach to investigate the relationship between government policies, agribusiness growth and agripreneurship development. Pearson"s product-moment correlation was also employed to investigate the degree of the linear relationship between the variables. The results of the study revealed a significant positive correlation between agribusiness development, rural education, Research and Development (R&D), legalities, development of family households and intellectual properties. The quantile regression results also disclosed a positive relationship between investments in the rural areas and agribusiness growth and entrepreneurship development. The quantile plots measured the deviations in the asymmetric quantile coefficients, and the results revealed that the coefficients seem to depart slightly at the various quantile points, from the OLS mean effect estimates.
Sustainable agricultural growth has become an area of interest for many researchers in the quest to increase food production in the midst of an escalating population. However, the evidence remains largely scanty, isolated and devoid of an in-depth analysis of how some economic policies promote agribusiness development in mainland China. Using time series data from 1990 to 2013, this paper adopts semi-parametric quantile regression to study the complex relationship between institutional policies in rural areas and agribusiness development. The study revealed the role of family household in promoting agribusiness development at the higher quantiles of the distribution. Moreover, government investment in rural health and education contributed significantly across the quantile distribution. The impact of research and development on agribusiness development is positively significant across the quantile points of the distribution within the study period. The result from the quantile graph clearly shows the disparities between OLS and quantile regression coefficients.
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