Study On Economic Developed Countries Fiscal Spending On Agricultural Effectiveness

The transformation of traditional agriculture has long been the important issue ofdevelopment economics, and many scholars have been working on how agriculturecould become a driving force of economic development in developing countries, butthe core of the problem lies in effective traditional agriculture transition in developingcountries. Agriculture should not be abandoned during the modernization, rather,modern agriculture is the significant foundation and guarantee of nationaldevelopment and modernization of traditional agricultural is the only way of nationalsteady progression. As far as our country concerned, the transformation of so largeand complex traditional agricultural system hangs on the government's fiscalallocation on agriculture; however, the fiscal reform had a strong impact on thecounty government revenue. Due to the insufficient investment in the majority of thecounties, agricultural fiscal expenditure shrinks further, and Chinese agriculturemodernization makes little progress.Compared with the ubiquitous financial embarrassment of other counties, theeconomically strong counties have prominent advantages in promoting themodernization of agriculture, and are expected to serve as a benchmark role,this isbecause economically developed counties are likely to drive the transformation oftraditional agriculture in both utterly scale and relative scale, owing to the previousfinancial accumulation of industrialization. But the reality is that China developingwith a fast pace puts a high value on industrialization and urbanization, and evaluateslower tiers of government in large measure based on GDP, it causes the economicallydeveloped counties pay inadequate attention to traditional agricultural transformation,and bring about the reduction of agricultural population and cultivated area. And theseled directly to increase fiscal spending on agriculture in economically developedcounties due to path dependence, on the other hand, fiscal spending on agriculture forthe advancement of agricultural modernization and industrialization is ineffective,which results in the long-term and low-level state of fiscal spending on agriculture.The scale advantage of the economically developed counties' fiscal spending onagriculture stems from two aspects: Firstly, economically developed counties' totalfiscal expenditure is increasing along with the increase of fiscal revenue, and with thefiscal spending on agriculture; Secondly, economically developed counties have betteradministrative resources and capacity,more cconvenient to get fiscal support fromhigher level of government. But there are also problems, such as unreasonableagricultural financial expenditure structure, object of fiscal support and the way theyuse them. Moreover, other agriculture-based counties with moderate economy paymore attention to the rational use of limited fiscal agriculture spending, wheneconomically developed counties are in diminishing marginal utility because ofcultivated land desolated and farmers' role change, therefore the efficiency of fiscalexpenditure on agriculture is even weaker than the other counties.Nevertheless, long-term and low level of the economically developed counties'fiscal expenditure on agriculture will miss opportunities of agriculture modernization.The agricultural issues caused by rapid economic development are more serious in economically developed counties than economically moderated counties. The identitychange from "farmer" to "workers" extends various income sources for farmers butreduces their dependence on the land, and so the cultivated land should be desolated.Low returns of cultivated land drive rational farmers migrants out for work andfarmland are widely abandoned in economic counties. Farming population andcultivated land acreage have both declined in economically developed counties, and itforces the government to make a choice: speed up agricultural modernizationindustrialization to bring a new round of development, or make agriculture completelyreduce to a supporting role.Therefore, the overall goal of this study is using a regression analysis, DEAmodel scale to estimate economically developed counties' scale, structural efficiency,and utilization of fiscal expenditure on agriculture on the basis of theoretical studiesachievements of the financial agriculture, county-level economy development,agricultural modernization, effectiveness of fiscal expenditure on agriculture,andforeign governmental agriculture expenditures. It makes an attempt to explain thetrack of agricultural financial expenditure which economically developed countyspend on with path dependency theory; explain the efficiency of agricultural subsidiesthat economically developed counties pay using the diminishing marginal effecttheory; present its structure features of agricultural financial expenditure from anotherperspective of rural public product attributes and alternation. On this basis, incubatesthe characteristics and mode of economically developed counties' fiscal expenditureon agriculture, then table a proposal of appropriate specific policy to improve itsefficacy.The study discourses upon the following aspects:(1) Clarify the hypostasis andbasic concepts of the efficiency of fiscal expenditure on agriculture in economicallydeveloped counties;(2) Analyzes the size and structure of the agricultural financialexpenditure using measure methods, such as regression and gray correlation;(3)Using the DEA model to analyze the differentia between the efficiency of fiscalspending on agriculture in economically developed counties and others during the past10years;(4) Compare experience of fiscal expenditure on agriculture of differentcountries, in order to improve the scale, structure and fund efficiency of agriculturalfinancial expenditure in economically developed counties;(5)Discuss and proposepertinent policies revolve around the research conclusion.On the specific research methods:(1) With inductive method, this paper attemptsto analyze some conceptual differences of agricultural financial expendituresystematically, and propose some hypothesis and study models;(2) Use the measuremethods such as regression and gray correlation to analysis the scale and structure ofthe agricultural financial expenditure, which shows that fiscal expenditure onagriculture in economically developed counties is not static but dynamic, whileagricultural output elasticity is not obvious, the technology promotion contributionrate of agricultural output value is low, large and medium-sized irrigation and waterconservancy facilities station accounts for a considerable proportion in agriculturalinfrastructure investment, much more than the small-size infrastructure constructionwhich may directly benefit in favor of farmers;(3) Using the DEA model as the measure method and economically developed counties' fiscal expenditure onagriculture as the object, we draw conclusions that economically developed counties'total fiscal expenditure on agriculture is excessive or deficient; capital structure isirrational; the actual agricultural fund is low, expenditure regions are out of balance;the focus is not prominent; system is imperfect; supervision is backward.Conclusions of this study (1)Economically developed counties did not distancethemselves from other counties, some even was significantly weaker;(2) Accordingto the econometric analysis of the scale, Structure and funds of economicallydeveloped counties' agricultural fiscal expenditure, we can see that the scale ofeconomically developed counties' agricultural fiscal expenditure is on the rise, andthe path dependence effect is obvious;(3)The marginal effect of agricultural subsidiesis diminishing, per capita agricultural financial expenditure is growing along with thedecline of agricultural population and actual cultivated land;(4)Object of agriculturalexpenditure should mainly be leading enterprises who play the leading role ofagricultural industrialization, but the work is very limited;(5)Industrial andagricultural mixed public goods is the significant course for inefficiency of fiscalexpenditure;(6)Agricultural fiscal expenditure on technology is generally inadequate,because the imperfections of the existing system limits the funds flow to the mostimportant subject——company and the third-party;(7)Because of the assessmentindicators in the pressure political system, economically developed counties areunable to focus on promoting agricultural modernization. The article also summarizesfour kinds of agricultural fiscal expenditure patterns hundred counties:"Outstandingagriculture-government-lead"(Integrated modern),"Outstanding agriculture-thecivilian-lead"(Converged modern),"Weak agriculture-government-lead"(Frazzlemodern) and "Weak agriculture-the civilian-lead"(Cooperation-competition modern).The article also specializes in effective practices of fiscal agricultural expenditure inwestern countries, investigates how the local governments of western countries tochoose the object of the agricultural fiscal expenditure.In order to alleviate the contradiction mentioned above, this study suggestseconomically developed counties regulate fiscal agricultural expenditure from thefollowing aspects:(1)Legislate for financial expenditure management, normative ruleof fiscal expenditure;(2) Construct the whole-process-supervision system to improvethe transparency of fiscal expenditure on agriculture;(3) Deploy the overall strategyof fiscal expenditure on agriculture to realize the agricultural industrialization goal;(4)Optimize structure of fiscal agricultural expenditure and increase agriculturaltechnology investment to realize agricultural industrialization with industry to drive;(5)Realize the transition from traditional agriculture to urban agriculture.In spite of the limited study on fiscal agricultural expenditure from countygovernment, this study finds the fact that the benefit of economicallydeveloped counties' financial agricultural expenditure is low, and it puts emphasis onits modernization of traditional agriculture from different perspectives, hence, thispaper proves to be of certain novelty. This paper integrates the econometrics,administrative management method, and analysis of the benefit of fiscal agriculturalexpenditure in economically developed counties. But because of the limitation of research conditions, that compared with other strong economy counties in Jiangsu,Shandong province, the characteristics of economically developed counties fiscalagricultural expenditure in Fujian province are unable to effectively include the fulllist of characteristics of fiscal agricultural expenditure of economic counties. Thoughtdifferent models are observed to be similar and we sum up the pattern of nationalfiscal agricultural expenditure, there are differences of existing among them.Therefore, this issue still needs further research in the future.