Study On Investment Policy Of Public Finance To Agriculture In China

Continuous and effective investment of public finance to agriculture is an important measure. Nowadays, many countries, especailly developed countries or areas adopt it widespreadly in order to protect and promote agriculture, increase farmers' income , stabilize and prosper village economy.Agricultural special position is decided not only by its economic benefit, but also by its social benefit primarily. During the industrialization progress of developed countries nowadays, although the proportion of agriculture production to GNP is very small, developed countries or areas still support agriculture development. Through much investment of finance to agriculture, it strengthens agriculture foundation position, increases the agriculture producers' income, promotes agriculture development continuously and stably. China is a big agriculture country. The population of village amount to 1,100,000,000, and the peasant households amount to 2 hundred million. Rural social and economy development is linked with the whole national economy and its social development very much. It is absolutely impossible that economy can develop and the society can progress without village development, stabilizes of agriculture and improvement of farmers' product and living conditions. Increasing the investment of public finance to agriculture is not only agriculture development itself, but also the demand of the whole national economy and the society development.In China, during the course of the establishment and implement of policy that public finance supporting agriculture, there is inefficiency for a long period of time. On the one hand, the total quantity is small. This is the reason why it is not easy to be efficient. On the other hand, the construction and pattern of investment to agriculture is not rational. So it leads to the worse result. To sum up, I will analyze completely the policy of Chinese public investment of agriculture; especially analyze the dint degree, the construction and the benefit of investment of public finance to agriculture firstly. Secondly, I will study how the developed countries public finance support agriculture successfully. Thirdly, I will approach the optimization way of the policy of public finance supporting agriculture. I hope it can be good to the efficient. There are more detail content as fellows:At first, this paper gives the basic theory of public finance investment and economydevelopment Agriculture is an external industry. It needs government support. Particularly, the government investment is the basic motive of economy growth and development. Adam Smith is the first man who initiated economy growth. He though capital accumulation and investment is the important condition of economy growth. So government should support agriculture preferentially. John Maynard Keyness's Multiplier Theory tells us the growth of GNP is the multiple of the investment quantity. He emphasized the important contribution of government investment to increase GNP and the employment. The model of Alvin Hansen, Paula Samuelson indicates the inside relationship of investment and business fluctuation. It reflects the reason why business fluctuation is the common function of the acceleration principle and multiplier principle. Theodore W Schultz thought public finance investment is the base of agriculture development, and the essential condition of increasing the agricultural productivity and strengthening its competition. It is also the key factor of the traditional agriculture changing to the modern agriculture. During the progress of the whole world economy development, agriculture is the basic industry in the national economy and the stable machine of the society. Agriculture is as important as modern industry. Meantime, agriculture is an industry that its benefit is small, its comparative revenue is not much and its risk is high. It decides government support.The second, the article discovers the developing process of the policy for Chinese public finance to support agriculture, and induces the main policy...