Fiscal Expenditure On Agriculture, Regional Discrepancy And Agriculture Growth

Agriculture is the base of the industries all around the world, its nature and importance to the economy provides the sufficiency of the intervention and assistance made by the government. Since the reform and opening-up started in 1978, China's agriculture output and fiscal expenditure on agriculture increased rapidly. Abundant investment has been moved to the agriculture. In recent several years, the"File No. one"issued by the Central Committee of the Communist Party of China indicated the determination of supporting agriculture. And the government made a lot effort through consolidating the agriculture base installation and establishing the social service system.Fiscal support has a positive role to agriculture output. This paper is based on public economics and econometrics, chooses a perspective of"province"to analysis the role of fiscal expenditure to agriculture output. What's more, this paper also scrutinizes the provincial discrepancy with quantitative work.This paper gives a good sort of paper review to the relevant topic of fiscal expenditure and economic growth, agricultural fiscal expenditure and agriculture growth which provides a solid base for the later part.The main part of this paper could be divided into three parts:The first part chooses a perspective of"input"of fiscal expenditure on agriculture to analysis the regional discrepancy. Historical description is given and based on which the growth rate of fiscal expenditure on agriculture and the Theil Index of all nation and three regions are calculated. We can know the conclusion that the regional discrepancy is growing.The second part chooses a perspective of"output"of agricultural fiscal expenditure to agriculture output, it uses a panel data with 1978—2005 of 30 provinces to calculate the elasticity coefficient(CF) of agricultural fiscal expenditure to agriculture output, with some other information, it departs the provinces into several parts to analysis the regional discrepancy. The main conclusion of this part is: the CF of east distinct is the biggest followed by central region and west region; with input, we can know that east provinces locate in high CF and high input part; central provinces high input low CF and low input high CF; west provinces high input low CF, low input high CF and low input low CF.The last part decomposes the elasticity coefficient, using variables like institutional environment, industry structure, region and education to analysis the influence of different factors; it uses a cross-sectional model to test the influence. The main conclusion of this part is: market is the most important.Finally, this paper gives some suggestions based on the former analysis.