Open Economy On Local Fiscal Agricultural Expenditure Scale Of Change And Effect Influence Research

The openness of the economy is considered to be a very important factorof the local government fiscal spending on agriculture scale changes.Since the reform and opening up, the rural economic development in FujianProvince has made great achievements, but also appeared to increase thepossibility of agricultural economy suffered external risk and impact,and the gap between urban and rural areas to expand the real problem,thereby constraining the sustainable development of the rural economy inFujian Province. Order to adapt to the uncertainty brought about by thischange, the government must ensure the safety of the agricultural industry,to maintain social stability in rural areas to reduce farmers’ hiddenunemployment, the defense economic opening up of rural residents may causethe risk and impact of the welfare loss, as well as narrow the gap betweenurban and rural areas, rural to urban and rural public serviceequalization of social and public financial expenditure. Especially afterjoining the WTO, the competitiveness of agriculture in Fujian Provincefacing international challenges. The same time, the contradictions andproblems faced in the three rural work is still arduous and complex, thewidening of the gap between urban and rural areas, the increasingly slowincrease of farmers’ income, declining per capita arable land, thetransfer of rural surplus labor more difficult, is lagging behind thedevelopment of social undertakings in rural areas as well as ruralecological problems worsening. And the solution of these problems dependson the implementation of the proactive fiscal policy to increase the sizeof fiscal spending on agriculture, vigorously strengthen the agriculturalinfrastructure, and measures to increase investment in rural research,thus enhancing the international competitiveness of agriculture.By taking the principal component analysis method, combined with thestage of economic development of Fujian Province, the open economic characteristics and the actual situation in the province, according tothe objectivity of the indicators and data availability estimates FujianProvince1980-2010year comprehensive economic openness. The results showthat economic openness in Fujian Province in1980-1994, showing a risingtrend, the small magnitude of the fall from1995to2001, for threeconsecutive years from2002to2004the rise, after they began to showa downward trend. Although economic openness in Fujian Province showedcharacteristics of Xianyanghouyi, but overall is showing an upward trend.Due to the impact of the economic opening-up strategy and continuouslyadjust the industrial structure of the national economy and other factors,the scale of fiscal spending on agriculture in Fujian Province showingperiodic changes in the law. First, the scale of fiscal spending onagriculture in Fujian Province in the long-term performance of the overallgrowth. Secondly, at various stages, the scale of fiscal spending onagriculture in Fujian Province showed unbalanced growth trend in thebeginning of reform and opening up, the relatively slow growth in the scaleof fiscal spending on agriculture, and accompanied by the continuousimprovement of the level of reform and opening up and the degree ofopenness, fiscal spending on agriculture The scale of growth is relativelyfast. The size of fiscal spending on agriculture growth rate, fiscalrevenue growth rate is constantly alternating growth, only nine years,the scale of fiscal spending on agriculture growth rate higher than thegrowth rate of fiscal revenue. The scale of fiscal spending on agricultureshare of financial expenditure, and the scale of agricultural financialexpenditure accounted for the proportion of agricultural GDP evenrelatively low compared with other developed countries, there are stilllarge gaps. The share of agricultural GDP in total GDP showed a decliningtrend, compared with the national fiscal financial scale of agriculturalexpenditure share and the share of agricultural GDP ratio, Fujian Province, has been below the national level. Fujian Province, most of the year thegrowth rate of agricultural GDP growth rate below the scale of fiscalspending on agriculture, that both the absolute value of the ratio is lessthan1,indicating that the inefficient agricultural financialexpenditure scale in most years.Theoretical and empirical analysis of the local financial impact ofchanges in the scale of agricultural expenditure by the openness of theeconomy, in theory the mechanism of economic openness on the impact ofchanges in the scale of China’s local fiscal expenditure for agricultureis analyzed from two angles of mathematical functions and geometry. Theresults showed that the impact of the economic opening of China’s localfiscal expenditure for agriculture scale changes in exist Xianyihouyangfeatures.The low stage of economic openness supports"efficiencyhypothesis"and the higher stage of economic openness supports"compensation hypothesis".In empirical analysis,border cointegrationtest method to examine the rate of change of the scale of fiscal spendingon agriculture and agricultural economic growth and economic openness inFujian Province, existing a long-term stability of the cointegrationrelationship.Within the long-term, the openness of the economy in general,long-term effects of the scale of fiscal spending on agriculture showinga rising trend, in which the different stages of economic openness, therising speed of its impact on the scale of fiscal spending on agriculturehas a different stage characteristics. Agricultural financialexpenditure scale in Fujian Province in the1980s to the decreasing trendof increase in the stage of support for "efficiency hypothesis"; and intothe1990s, the size of fiscal spending on agriculture in Fujian increasingtrend expanding the stage support "compensation hypothesis".Theoretical and empirical analysis of the local financial impact ofeffects in the scale of agricultural expenditure by the openness of the economy, proved theoretically that showed a decline relationship betweeneconomic openness and fiscal spending on agriculture economies of scale,that is, the greater the degree of economic openness, the smaller the scaleeffect of fiscal spending on agriculture: the scale output effect offiscal spending on agriculture as the economy and opening upimprovementin the level decreases, the price effect of the financial scale ofagricultural expenditure continued to enlarge With the improvement ofeconomic openness.In the empirical analysis,found that the size of fiscalspending on agriculture with the promotion of the agricultural output inthe short term, but in the long-term effects on agricultural output asthe economy and opening degree of improve and tend to weaken the the therural price effect with the improvement of economic openness tends obvious.The output effect, with the improvement of economic openness, for the yearthe scale output effect of fiscal spending on agriculture in FujianProvince has a significant role in promoting fiscal spending onagriculture-scale output in Fujian Province, for the one-year lag effecthad a negative impact, but is not supported by empirical evidence, theopenness of the economy for the stimulation of the scale of fiscal spendingon agriculture to agricultural output in the year directly manifested,the effect is relatively fast.Thus,generally speaking, with thecontinuous improvement of the degree of openness of the economy, the scaleof fiscal spending on agriculture in Fujian Province output effect ofweakening. The price effect, the openness of the economy when the sizeof the fiscal spending on agriculture price effect is not obvious.Economic openness scale price effect of fiscal spending on agricultureby the lag effect of the scale of fiscal spending on agriculture andagricultural financial expenditure scale price of a one-year lag effect:the rise of economic openness has significantly enlarged the role ofeconomic improve the openness of the financial year lag price effect of the scale of agricultural expenditure has significantly weakened. Longterm, the openness of the economy on the scale of fiscal spending onagriculture output effect and the price effect is not obvious.Finally, the main conclusions of the study and its policy implications.The government should increase fiscal spending on agriculture-scaleefforts to improve the scale and level of fiscal spending on agriculture,to enhance the efficiency of the financial scale of agriculturalexpenditure. Capital expenditures to improve rural infrastructure to;increase spending on education in rural areas to enhance their level ofhuman capital and technical training, to increase the rural socialsecurity, social welfare in rural areas, rural policy subsidies, ruraltransfer payments and increase rural water conservancy, farmland, trafficrural public services spending. To maintain price stability in rural areas,the rural price fluctuation range is expected to develop a level, to avoidthe occurrence of inflation, and to consider the establishment of thesystem of fiscal spending on agriculture policy pegged to the rural CPI.