An Analysis On The Effect Of Financial Expenditure For Supporting Agriculture Of Jilin Province On Agricultural Economy

As important governmental means to protect and support agriculture,financial expenditure for supporting agriculture significantly promotes the development of agricultural economy.Ever since the reform and opening-up,as a major province of agricultural resources and primary base for commodity grain,the financial expenditure for supporting agriculture of Jilin Province has increased rapidly, therefore,played a positive role in the sustainable and healthy development of agricultural and rural economy.Based on public economics and econometrics,this thesis measures and analyzes the effect of financial expenditure for supporting agriculture of Jilin Province on agricultural economy by the instruments of co-integration and the Granger causal testing.Firstly,this thesis collates and classifies related literature of different provinces that analyze relationship between financial expenditure for supporting agriculture and economic growth,grain production,and income of agricultural laborers,which presents a rough framework and content reference for the measurement and analysis thereafter.Secondly,necessary explanation and illustration are made to the research method of the thesis,computing instruments,data resources,and definitions of relative concepts.The body of the thesis falls into three parts:Part one focuses on analyzing the relationship between financial expenditure for supporting agriculture of Jilin Province and four important indicators for the development of agricultural economy.Analysis of trend and correlation on the value added of primary industry,total output value of agriculture,forestry,animal husbandry,and fishing,total grain production,and net per capita income of agricultural laborers shows that the financial expenditure for supporting agriculture of Jilin Province was moderately linear related with the value added of primary industry, total output value of agriculture,forestry,animal husbandry,and fishing,and net per capita income of agricultural laborers,but lightly linear related with the total grain production.Part two further studies the trend of and correlation between the financial expenditure for supporting agriculture and the value added of primary industry,total output value of agriculture,forestry,animal husbandry,and fishing,and net per capita income of agricultural laborers after selecting samples of representative grain-producing counties,such as Gongzhuling,Meihekou,and Changling,from east, middle,and west areas of Jilin Province.In part three,firstly,from the view point of the whole province,the thesis observes and analyzes the relationship between the financial expenditure for supporting agriculture of Jilin Province and GDP1,the value added of primary industry,total output value of agriculture,forestry,animal husbandry,and fishing, total grain production,and net per capita income of agricultural laborers from 1978 to 2007.(1) unit-root testing,stability analysis.(2) Co-integration regression analysis.(3) Granger causal testing.Then from the angle of representative cities or counties, observations and analysis are made on the relationship between the financial expenditure for supporting agriculture of Jilin Province and GDP1,the value added of primary industry,total output value of agriculture,forestry,animal husbandry,and fishing,total grain production,and net per capita income of agricultural laborers from 1978 to 2007.(1) unit-root testing,stability analysis.(2) Co-integration regression analysis.(3) Granger causal testing.It was concluded from the analysis that from 1978 to 2007 there is no causal relationship between the financial expenditure for supporting agriculture and the value added of primary industry,total output value of agriculture,forestry,animal husbandry,and fishing,and net per capita income of agricultural laborers,but only unidirectional causal relationship with the total grain production.Lastly,the thesis summarizes the conclusions of the preceding analysis,based on which,targeted policy suggestions are put forward.