Agricultural Financial Expenditure And Shaanxi's Economic Growth Relationship

The party's "11th Five-Year Plan" definitely put forward the next five years' guidelines, the overall objectives, major tasks, and the important measure of the our country economic social development. Finance is the material foundation , policy tools, system guarantee and monitoring means of the implementation of the party and state great policies. In the "11th Five-Year Plan" period, the main mission of the financial work is that: Actively promote the harmonious development between city and countryside, continuously extend the public finance's overlay scope on "The three Agriculture". A lot of research results express: the agricultural fiscal expenditure policy can promote the development of agricultural economy. In order to maximize the allocation efficiency of financial resources, and optimize the agricultural structure of financial expenditure, it is necessary to accurately grasp the role of the financial expenditure in the agricultural economic growth. We should make certain the relationship between the agriculture financial expenditure and economic growth, such as whether the agriculture financial expenditure can promote economic growth and the contribution rate of the agriculture financial expenditure. Because China's territory is too broad, there are different level of economic development in the eastern, central and western provinces. Study the relationship between agriculture financial expenditure and economic growth on the national level, we maybe neglect the difference of each provinces. So it is necessity to study the relationship at the provincial level. We take Shaanxi as an example to study the contribution rate of the agriculture fiscal expenditure on economic growth, we hope that the paper can provide some theoretical guidance for Shaanxi.This paper is divided into six parts:The first part is introduction, mainly gives the study purpose and theoretical and practical significance and the idea of this paper, plans out the research framework and the possible innovation.The second part is the review about the domestic and international research situation, and divided into four parts. They are the correlation between government finance expenditure and economic growth, the effectiveness of fiscal policy, the function mechanism of the government finance expenditure to economic growth, the contribution of the agriculture financial expenditure to economic growth.The third part is the status quo of finance expenditure of Shaanxi's agriculture. defined the agriculture finance expenditure and the related concept. Secondly, the author compared the Shaanxi Provincial GDP with agricultural financial expenditure, especially analyzed the scale and ratio of Shaanxi agricultural financial expenditure since the reform and opening up. Finally, the paper pointed out that the target mission of Shaanxi's building new rural areas in "11th Five-Year Plan" period.The fourth part is the relation-research between the agriculture financial expenditure and economic growth. According to Grey System theoretical, There is a conclusion that the agricultural financial expenditure and economic growth are highly related. Then, the paper discussed the function mechanism of agriculture financial expenditure to the sustained economic growth of Shaanxi province, the point was discussed in detail from the following two aspects: the relation between agricultural financial expenditure and the expansion of domestic demand in rural areas in Shaanxi, between Shanxi expanding domestic demand in rural areas and Shaanxi's sustained economic growth .Finally, through the Granger causality test, there is a causal relationship between agriculture financial expenditure and agricultural economic growth in different lags. And there is a one-way causal relationship between agricultural financial expenditure and the whole province's economy.The fifth part, On the basis of the conclusion,the author further study the contribution rate of fiscal expenditure to economic growth in agriculture, and the contribution rate of agricultural fiscal expenditure to the whole economic growth.The sixth part is the application of conclusion. As a less developed province, Shaanxi is in the process of economic catching up strategy, the financial as an effective investment channels, provide an effective financial support for agriculture so that the effect can promote the Shaanxi's "11th Five-Year" plan Goals to be achieved smoothly.The main conclusion of this paper is: Discussed the relationship and got that agriculture financial expenditure and the agricultural economy in Shaanxi Province have highly correlation, the correlation coefficient reached respectively 0.970 and 0.910, the correlation coefficient between agriculture financial expenditure and the whole province's economic reached respectively 0.971 and 0.962. There is Granger causal relationship between agricultural financial expenditure and agricultural output, They influence each other and promote each other. The average contribution rate of agricultural financial expenditure to agriculture economic output in Shaanxi province is 0.2204, this prove that the 1/5 Shaanxi's agricultural economic growth rely on the financial support of agriculture, the contribution rate of agriculture fiscal expenditure to Shaanxi's whole economic growth rate reached 2.41%.