The Effects Analysis And Policy Suggestions Of Fiscal Expenditure On Supporting Agriculture In China

Fiscal expenditure on supporting agriculture(FESA) is an important guarantee for the agricultural development and rural economic development given for the foundational characteristics and disadvantaged status of agriculture,and the effects of FESA is the focus of domestic academic and practical.China's long-standing urban-rural dual economic structure has restricted the further development of the rural economy,and hindered the growth of farmers' incomes.Financial crisis in 2008 not only have had a great impact on the backward rural areas,but also affected the increasing of farmers' incomes.Therefore,it is of great significance to study how to adjust China's financial policies on agriculture and how FESA help to increase farmers' incomes.The purpose of this paper is to do normative analysis on the size and structure of FESA and do empirical analysis by using the data of FESA and farmers' income in China,at the same time,this paper does empirical analysis on the influence of FESA on farmers' income by building panel data model based on the data of FESA in every province.And according to the research of problems in agriculture policy and new issues in China's rural areas,some policies and suggestions are proposed including multi-channel financing to increase capital,increasing the investment for farmers and adjusting the structure and priorities of fiscal expenditure on agriculture in accordance with characteristics of regional economic development.In this paper,empirical results show that take the view of the whole country, with the exception of agricultural capital expenditures,China's FESA has a significant influence on increasing the incomes of the farmers,but a lack of flexibility;the results of the analysis from different regions show that FESA in western region has the most important effect on farmers' incomes and the eastern region supporting less developed regions is the most effective way.And the comprehensive agricultural development expenditure in the three regions has the biggest positive impact on farmers' incomes, while the impact of the expenditure on agriculture,forestry,water conservancy, meteorological department on farmers' income changed from negative into positive, however,the total expenditure of FESA is still relatively low,and the structure of expenditures and regional financial arrangements for supporting agriculture need to be further optimized.The main innovation of this article is as follows:(1) this paper uses the indicators of net FESA which deduct financial revenue from agriculture to reflect the scale of FESA more accurately;(2) the related research done by domestic scholars are mostly qualitative analysis,and quantitative analysis is relatively rare.Some quantitative analysis done by certain scholars is mainly simple statistical analysis on the size and structure of FESA which does not take into account the heterogeneity in different provinces.While in this paper,we employ the panel data model to analysis the influence of FESA on farmers' incomes in different regions.