Research On Performance Of Fiscal Expenditure For Agriculture

The issue of agriculture, farmer and rural area is Chinese government's main concern which is demonstrated by the practice of Chinese socialist revolution and construction. As a matter of fact, Chinese government took its very first step of reform policy in its rural area. And its heavily committed support will be a vital part in progressively transforming the present lagged traditional small-scale peasant economy into an advanced highly-developed modern agriculture which is also justified by the process of the agricultural development of those developed countries and newly industrialized countries as well.Before the adoption of the reform and opening policy, Chinese government sacrificed the development of agriculture for accelerating its industrialization by refraining and controlling the price of agricultural products on purpose and at the same time, elevating the price of its industrial products. In this way, the requirements of the strategy of giving priority to the development of urban area and industry is satisfied by building up the primitive accumulation of capital for national industry at the cost of large amounts of agricultural profits which, in turn, greatly impaired the accumulative ability of agricultural spontaneity. Since the last two decades of last century, with the policy of the reform and opening-up, the instituting of the household contract responsibility system and its resulting incentive system have enabled the allocation of resources to be further optimized, the labor efficiency to be enhanced and farmers'incentive to produce to be stimulated. As a consequence, even with bare improvement in the level of agricultural production technology, there is a boom in agricultural development which settled the long pestering problem of the shortage of agricultural products. Nevertheless, the fragile situation of agricultural development and its accumulative ability of agricultural spontaneity remain to be tough problems calling for solutions. Currently, being in a brand-new stage, the development of China's agriculture should be focused on the improvement in the overall production capacity, the amelioration in the infrastructure of agriculture, the optimization of ecological environment, the increase in production efficiency, the raise of farmers' income and the fast pace of the development of rural economy which definitely required the government to increase its financial input and to ensure a more effective role being played by its financial funds in constructing a new socialist countryside.In the dissertation, by applying the theories and principles of disciplines of Agricultural Economy, Industrial Economy, Comparative Economy, Applied Statistics, Econometrics and Agricultural Natural Science to practice, the author makes a logical presentation of the basic theories of financial assistance to farmers, and likewise, the author makes a detailed analysis of the quantitative relations between finance assistance and its structure and the growth of agricultural GDP and the farmers'income, furthermore, the author evaluates objectively the actual effect of fiscal expenditure from every aspects and makes a comparison of the policies of assistance and protection to agriculture of developed countries and newly industrialized countries without failure, and, in the end, by summarizing those successful factors of those countries, the author provides feasible political measures to take to improve the performance of our financial assistance to agriculture by adopting methodologies of the combination of Micro and Macro analysis, Empirical and Norm study, Quantitative and Qualitative research and comparative and statistic study.There are altogether six chapters in this dissertation.Chapterâ… is served as an overall introduction to the domestic and international background of the research, the purpose of the research and its significance, the methodology involved in the research, the outline and framework of the paper, its creative opinions and its limits.Chapterâ…¡is mainly the section of theoretical analysis. The theoretical basis of financial assistance to agriculture is analyzed in great detail which involves the Public Finance Theory and Economy Growth Theory.In following three chapters, chapterâ…¢andâ…£are about the empirical analysis. In this part, descriptive statistical analysis methods are applied to analyze the performance of both absolute scale and relative scale of financial assistance to agriculture. Also, mathematical statistics and econometric approaches are used to establish metering models to analyze the actual effect of the structure of financial assistance to agriculture on agricultural GDP and farmers'income from both dynamic and static angles. Thus, at the end of this part, some conclusions are drawn and some problems are put forward for inspiring the ways to improve the performance of financial assistance to agriculture.Chapterâ…¤is to be a section of a comparative analysis. The processes of agricultural development of developed countries and newly industrialized countries are fully compared to seek the patterns of development of their agriculture that can be valuable lessons for China's agricultural development.The last chapter, chapterâ…¥, is employed as part of conclusions and policy suggestions. The overall principles of financial assistance to agriculture and several relations which must be managed are expounded and elaborated. Finally, referred to the experiences of developed countries', some specific policies and tentative measures are proposed to solve the existing problems in China's present financial assistance to agriculture.