The Study On Productive Public Expenditure On Rural Economic Growth

Rural and agriculture is the foundation of the national economic development, the steady development of agriculture has a special contribution in Chinese social stability and economic development, and therefore, it is necessary for government to support. Government expenditure on agriculture is an important means to achieve agricultural development. Based on existing research and add the latest data, the paper researches and evaluates the impact of government expenditure on agricultural development systematically, particularly conducts an empirical study on the economic efficiency of the use of the funds. By analyzing the impact of the sub-item expenditure, the paper evaluates whether the size of the expenditures is reasonable.This article is divided into five chapters: the first chapter introduces research background, research significance, as well as the innovations of this thesis. The second part is the Literature Review of the government public expenditure and economic growth, this section mainly summarizes the relevant literature on the domestic government public expenditure and economic growth in chronological order. The third part is the model of the mechanism of the interaction of the government's public spending on agriculture and agricultural economic growth, by theoretical explain modern macro-economic growth theory, the paper describes the three main factors of influencing agriculture economic growth: capital, labor, and government public input. The fourth chapter is empirical research of the relationship of our government's public spending on agriculture and agricultural economic growth. In this chapter, we first longitudinal analyzes nearly a dozen of China's agriculture development in a statistical view, then studies the relationship between our government's public spending on agriculture and agricultural economic growth. The index of state government's public spending which we select is the Productive Public Expenditure (PPE), also we analyze the role of the state financial expenditure for agriculture (Gov) and rural relief costs (RUR) on agriculture contribution to economic growth. The fifth part, combing the study results with actual situation, we put forward the corresponding suggestions for policies in light of government's public spending on agriculture.According to the classical macroeconomic theory, the paper studies the impact of the Productive Public Expenditure (PPE) to the primary industry. Using data of the year1978 to 2007, the paper establishes time-series model, applying the least square method and the generalized difference method, the paper select the number of suitable explanatory variables to study the factors of the impact on the output of the primary industry. The results showed that: the states should increase the government's expenditure for agriculture, especially the size of the Productive Public Expenditure (PPE), adjust and optimize the structure of the government's expenditure for agriculture and increase the transfer of agricultural population on efforts at the same time, only in this way our country can have long-term agricultural and rural development.