Shaanxi Province Fiscal Expenditure And Agricultural Economic Growth - An Empirical Study

This paper firstly describes the status quo and problems of fiscal expenditure on agriculture of Shaanxi Province, and then empirically analyzes the relation between fiscal expenditure on agriculture and agricultural economic growth. Through using Granger causality test and the Johansen cointegration test, this paper draws some conclusions. From the perspective of the total, fiscal expenditure on agriculture is the agricultural economic growth Granger causes, and there exists a cointegration relationship between fiscal expenditure on agriculture and agricultural economic growth. The output elasticity of total fiscal expenditure on agriculture is 0.25. From the perspective of the structure, the subprojects of fiscal expenditure on agriculture, such as rural production supporting expenses and departmental operating expenses, agricultural capital construction expenditure and agricultural technology promotion are the Granger causes of agricultural economic growth, and there exists a cointegration relationship among them. The output elasticity of rural production supporting expenses and departmental operating expenses is 0.99, the output elasticity of agricultural capital construction expenditure is 0.34, and the output elasticity of agricultural technology promotion is 0.44. The sequence of the output elasticity from high to low is:rural production supporting expenses and departmental operating expenses, agricultural technology promotion, and agricultural capital construction expenditure. Finally, this paper proposes some countermeasures according to conclusions to promote agricultural economic growth of Shaanxi province, such as increasing the fiscal expenditure on agriculture, adjusting the structure of fiscal expenditure on agriculture, and so on.Probably, the innovation of this paper is that it narrows the scope of the research. Most of the related domestic researches study the relationship of fiscal expenditure on agriculture and agricultural economic growth from the national perspective. And this paper narrows the scope of the research, particularly studies the relationship of fiscal expenditure on agriculture and agricultural economic growth of Shaanxi Province.