Research On Fiscal Investment And Financing In Western Region's Agriculture Infrastructure

The western region is vital to Chinese agricultural production, for the reason that itsdiversified agricultural production environment is important to Chinese agriculturaldevelopment, moreover, western region is the place where most rivers originated, theappropriate mode of agricultural production which is decided by agricultural infrastructurelevel will directly influence the drainage area's and even the whole country's ecologicalenvironment. The agricultural infrastructure in western region lagged due to some historicalfactors, and the agricultural production has retained on traditional stage, this has formed avicious circle, which is low agricultural productivity—over-exploitation of agriculturalresources—deterioration of the agricultural ecological environment—low agriculturalproductivity—further over-exploitation of agricultural resources. China has improvedinvestment and financing system in agriculture since the reform and opening, though it hasmade some progress, the way of fiscal supporting agriculture depending on executive ordersis still not changed. Financial market system to agricultural has not established. Theregulation mechanism of agricultural fund's direction and quantity is not effective and stillrely on policy. And the agricultural fiscal investment and financing system is undeveloped, soit is hardly the leading role of the diversified agricultural investment and financing system.Agricultural fiscal investment and financing is an effective way to agricultural investment andfinance in developing countries and even in developed countries, it can promote agriculturalinfrastructure effectively through high financing and investment efficiency with thecombination of government and market. Agricultural fiscal investment and financing system'sconstruction and improvement are key factors to prevent ecological environment degradation,restore ecological circle and get the sustainable development of agricultural production inwestern region. This system is also critical to the scale and efficiency of fiscally supportedcapital and the sustainable private capital to a great extent, which can promote the economy todevelop, and eventually achieve to the both development of agricultural ecology andproduction in western area.On the basis of Institutional economics, monetary finance and the modern investmentand financing theory, this dissertation reviewed the theories and literatures of fiscal investment and financing in agricultural infrastructure both domestic and abroad, defined theintension and extension of agricultural infrastructure and fiscal investment and financing,analyzed the present condition of agricultural infrastructure's construction and fiscalinvestment and financing in western region, discussed the problems in western region's fiscalinvestment and financing in agricultural infrastructure, revealed the reasons of the laggingdevelopment of western region's fiscal investment and financing in agricultural infrastructure.Through game analysis, this dissertation analyzed different subjects' behavior character andmutual influences who participate in western region's agricultural infrastructure construction,structured fiscal investment and financing system in agricultural infrastructure whose core isAgricultural Development Bank of China based on cooperation principle, set the pattern ofwestern region's fiscal investment and financing in agricultural infrastructure, and finallygave some suggestions of improving western region's fiscal investment and financing systemin agricultural infrastructure.Firstly, this paper tested the relationship between agriculture infrastructure andagricultural economy development using co-integration theory, then reached the conclusionsthat lagging benefit exited in agriculture infrastructure construction, and agricultureinfrastructure investment should be in advance in practice. Through the quantitative analysisof agriculture infrastructure construction in west area, this paper indicated that agriculturalmachines had no significant influence on agricultural GDP, and the main reason was the lowefficiency of irrigation facilities whose functions were restrained by the diversification ofwestern geographical environment. So to improve the funding efficiency, it should base onthe present situation of western agricultural infrastructure during the project selecting.Secondly, whether the goal of fiscal investment and financing can be reached or not, itdepends on external supported conditions. Trough game analysis on participants' behavior,western areas' governments and micro participants relied more on central governmentcompared to other areas. Due to insufficient supply of agricultural infrastructure out of fiscalpolicy and the incomplete of rural financial system in history, the agricultural infrastructureconstruction has been undeveloped for a long time. So government' support is the key factorto keep the fiscal investment and financing in agricultural infrastructure construction in westrunning well. The new agricultural fiscal investment and financing operating mechanism,basing on the situation of rural financial system, taking the Agricultural Development Bank ofChina as a core, combining different kinds of commercial financial institutions under thecooperation principle, is good for using the rural financial market's resources effectively andreasonably, and eventually get sustainable development of this system in long-term.Lastly, this paper concluded that choosing an appropriate fiscal investment and financing pattern is the key guarantee for this system to fully support agriculture. The traditional fiscalinvestment and financing way couldn't run the spare capital, and it also couldn't diversify andredistribution risks, but with the new appropriate project financing channel during theagricultural infrastructure can disperse risk effectively and thereby accumulate more socialcapital.