| Food security, Energy security and Financial security have being known as the world’s three economic security, Food was an important strategic resource of national security, and how to guarantee the food security was always the core target of the rulers’ agricultural policy. Agricultural policy, Local Government supporting agriculture behavioral preferences and the policy effect of them were influenced by the national economic development strategy, the level of economic development, fiscal system and external environment and institutional supply. Fiscal decentralization system was considered to be the major institutional arrangement in the middle and late period of1990 s of China’s rapid economic growth, but academia less concerned about the influence and performance of fiscal decentralization system in agricultural economy and food production, lacking systematic analysis, and the conclusion of some theoretical and empirical research on fiscal decentralization and government support behavior, government policies and food production effect were not unified. Chinese food production ushered in the "Twelve-year of continuous growth" currently, but with which was food production resource and environmental constraints increasingly tight, the structure of supply and demand contradiction, low comprehensive efficiency of food production. How to effectively motivate local governments’ will of supporting food production,upgrade the efficiency of local government fiscal policy on supporting agriculture, which would be the important content on the reform of the fiscal system and comprehensive reform of food in the future, studying on this issue will have important theoretical value and practical significance.Policy support and fiscal support was the necessary policy guarantee and capital source of food production due to its natural weak industry characteristics. But the behavior of local government financial support for agriculture was born within the fiscal system. This study was based on the new institutional economic, we put fiscal decentralization system and the behavior of local government fiscal support for agriculture and food production into the same analysis framework, introduced the change of fiscal system and behavior of local government supporting for agriculture into the perspective of food production and grain-farmers income and food production efficiency, to reveal the mechanism of action about the changes of incentive mechanism and system supply impact on behavior and willingness and performance of local government fiscal support for agriculture and which transfered to food production under the background of fiscal decentralization, and to explore the sustainable development path and the effective institutional supply and government supporting policy arrangements on China’s food production in stabling production capacity, improving efficiency, increasing the income under the new food production situation.The main conclusions of the study were summarized as follows:(1) The fiscal decentralization system influenced food production through the incentive mechanism restraint local government fiscal policy arrangements and the behavior of supporting for agriculture. In the utility function of local government whose main objective was economic growth, the conditions of local government utility maximization was the local government’s fiscal expenditure in different departments got convergence marginal contribution to economic growth. Because of the great differences in the contribution to regional economic growth in food and other industries, local government finance urban bias was inevitable. In the grain production function, government fiscal input in agriculture was an important source of capital factors,not only the level of fiscal expenditure but also the use efficiency of funds could affect food production. So the fiscal decentralization system could affect the level and the efficiency of food production through the incentive mechanism restraint local government behavior and financial arrangements for agriculture in the same analysis framework.(2) There was a significant long-term Dynamic equilibrium and short-term Dynamic correction mechanism among "progressive" decentralized fiscal system, fiscal policy supporting for agriculture and food production. Based on VAR and VEC model we found that:Fiscal Decentralization had positive impact on food yield, fiscal expenditure on agriculture had negative impact on food yield in long-term; but both of them showed opposite effect on food yield in short-term, and there was an obvious difference due to different lag in effect size and continuous time, when there was a shock from the economic system made the food yield deviate from the long-run equilibrium, the food yield had its dynamic correction mechanism, the error correction term would be 0.0076 efforts to pull back food yield to the long-run equilibrium level. Moreover, there was a significant difference dynamic equilibrium relationship among fiscal decentralization, fiscal policy and grain yield before and after the fiscal decentralization system established.(3) The fiscal expenditure decentralization, local government fiscal policy on agriculture had a significant impact on food production, and which showed significant temporal and spatial differences. Based on the dynamic panel GMM empirical analysis we found that: the fiscal expenditure decentralization had significant positive impact on Food Yield and Seeded Area, but had no significant effect on Food yield per unit area, local financial autonomy only had significant positive effect on Food yield per unit area in full sample period; the Quantity and the Proportion in structure of local government fiscal expenditure on agriculture had not significant or even negative effect on Food Yield and Seeded Area and Food yield per unit area. And which showed significant temporal and spatial differences. Based on the perspective of spatial economics, SDM model empirical results showed that: food production in all provinces had significant spatial spillover effect,and the fiscal decentralization, agriculture policy factors which influenced food production also showed significant positive spillover effects.(4) Fiscal decentralization, local government fiscal policy on agriculture impact on the different types of farmer income, which consisted of the action mechanism of Micro-subject.Based on the dynamic panel system-GMM the study found that: fiscal expenditure decentralization had positive effect on farmer total income, family business income and wages income; the per capita fiscal expenditure on agriculture had significantly positive effect on farmer total income and wages income, but it had not significant or even negative effect on farmer family business income, the Proportion in structure of local government fiscal expenditure had no significant effect on farmer income. And which showed significant temporal and spatial differences. Further in the analysis of income gap between urban and rural residents, the fiscal expenditure decentralization and localgovernment fiscal autonomy had positive had a significant "shrink" effect in the income gap between urban and rural resident total income and transfer income, but the effect of the Quantity and the Proportion in structure of local government fiscal expenditure on agriculture was weak.(5) Fiscal decentralization and fiscal policies on agriculture to promote food production efficiency was significantly difference. Based on DEA-Malmquist model analysis we found that:since 1978, China’s food production TFP, technical efficiency, pure technical efficiency and technical progress rate did not reach DEA effective, and which exhibited the degradation trend; and the food production efficiency of most food production areas was significantly different; after the1994 reform of tax system the food production efficiency decreased gradually, and more intense in efficiency fluctuations; the dynamic evolution of food production efficiency was similar to "first increase after stabilization, then the rapid decline, the last fast gradual recovery" path. Based on the panel Tobit random effects model we found that: fiscal expenditure decentralization and local government fiscal autonomy both had significant positive effect on food production efficiency, but the effect of local government fiscal policy supporting on agriculture was not obvious. And the influence of the fiscal system and policy factors on food production efficiency and its decomposition index showed significant temporal and spatial differences.Generally speaking, we concluded the core conclusion by the theoretical and empirical research:fiscal decentralization system was a very positive institutional arrangement on stabling yield of food production, improving food yield per unit area, increasing farmers’ income and improving comprehensive efficiency of food production. But this institutional arrangements set urban bias of fiscal incentives for the local government, which made the local government had low willingness and efficiency on fiscal support for agriculture, so that the local government finance supporting agriculture policy on food production, farmers’ income and food efficiency was not significant or even opposite, which not really play the performance of fiscal policy.In view of this, the main policy was proposed in this paper were summarized as follows:(1) Consolidate and improve the fiscal decentralization system, to give full play to "Stratified Governance" institutional advantages. Stably enhance the comprehensive food production capacity and ensure food security, fiscal decentralization was a suitable fiscal system supply under the background that food production environment became more complex and resource conditions increasingly degraded. We should gradually improve the fiscal decentralization system on consolidating the system basis: First, Try the legal construction at all levels of government fiscal power and responsibility, strengthen financial system stability; Secondly, Clear all levels of government revenue and expenditure responsibilities, determine the boundary of fiscal power and responsibility of all governments; Thirdly, Improve the transfer payment system, transfer payment funds should be gradually incline to the agriculture, science and technology departments, especially,inspire the central transfer payments to local government stimulating effect on support for food production.(2) Reconstruct the restraint and incentive mechanism of local government behavior,enhance the willingness and efficiency of local government fiscal policy on agriculture. First,Shift the one-way constraint mechanism of "top-down" to "bottom-up" constraint, to be better reflect the regional farmers’ preference and welfare needs. Try to establish highly organized, professional autonomy organization based on crops varieties, grain contiguous area, such as the peasant associations, rice cultivation associations, or on the basis of professional farmer cooperative organization, which could be better represent farmers in the organization, express fiscal needs andpreference, so that to enhance the expression of information quality and efficiency. The fiscal behavior of the local government should be responsible for this organization, Farmers’ organizations or cooperatives had the power of assessment of local government fiscal behavior and performance etc. Secondly, reconstruct the distortion incentive mechanism of local government behavior. The most important was to reconstruct the promotion incentive of local government, which should not only depend on GDP indicators to comment local government performance and accordingly decide to official promotion, must add agricultural development index and weight, to build a "green" GDP index, and the assessment mechanism must be diversities and flexibility.(3)Match the power and the responsibility on agriculture, balance the fiscal resources in inter regional, to formation the stable growth mechanism of fiscal supporting on food production. The key point of the power and the responsibility on agriculture of local government did not match was that the local government fiscal power gradually shrinking could not meet the increasing expenditure responsibilities demand, so on the one hand, the central government should gradually delegate the power of fiscal revenue to local government; on the other hand, the central government should concentrate education, health care, agriculture and food support expenditure responsibilities, which had obvious welfare benefits; Specification, hardening of the local government budget, strengthen the people’s congresses and the auditing departments power of supervision of the local government expenditure, and gradually increase the fiscal expenditure of local government transparency and accuracy. Construct the benefit compensation mechanism on food production through the food supply and demand between provinces or based on the actual purchase and sale of grain, with which it could compensate the fiscal revenue loss in terms of the main food producing provinces’ food planting, sell food commodity.(4)Optimize the mode and structure and innovate the new focal point of fiscal expenditure on agriculture, improve efficiency in the use of fiscal funds. The key point of optimization the mode and structure of fiscal expenditure on agriculture lied in innovation the new focal point, which should shift the fiscal expenditure focus gradually to train the professional farmers and large production family, construct public service platform of food production, construct the insurance system and risk early-warning prevention system. And it should lock key fiscal support for agriculture in the "software" side, gradually reduce spending efforts on low efficiency and large infrastructure projects such as the "hardware" side, which could gradually optimize the expenditure structure and improve the fund use efficiency through innovation the new focal point in fiscal expenditure on agriculture.In addition, guide the financial and social capital into food production, which could make the source of fiscal in agriculture diversification; speed up food and the food market construction,Innovate food production subsidies model, inspire the joint force of fiscal in agriculture, which also should be consider by government. All in all, food production is not only an economic problem, but also the political and social problems, which should carry out comprehensive reform and adjustment from the broader scope.
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