Financial Investment In Agriculture Research On The Effects Of Agricultural Growth And Farmers' Income

This article focused on the gross and structure of financial expenditure for agriculture. On one hand, by reviewing the historical data, this article analyzed the problem both in the gross and structure of financial expenditure for agriculture. On the other hand, by establishing vector autoregression models related financial expenditure for agriculture to agriculture facilitation and peasant revenue increment, and using cointegration analysis, error correction model, granger causality, impulse response function and variance decomposition method, this article evaluated the impact of financial expenditure for agriculture on agriculture facilitation and peasant revenue increment.The empirical study indicated that:Financial expenditure for agriculture was deficient in gross, its impact on agriculture facilitation and peasant revenue increment was slightly weak. From 1983 to 2006, financial expenditure for agriculture, agriculture GDP and peasant revenue exhibited long-run equilibrium relationships. But the Granger causality test showed that in short-term, financial expenditure for agriculture was not the cause of agriculture facilitation and peasant revenue increment, whereas agriculture facilitation and peasant revenue increment were the cause of increment of finance agriculture expenditure. The outcome of impulse respond functions and variance decompositions indicated that the impact of finance agriculture expenditure to agriculture facilitation and peasant revenue increment was not significant. Moreover, the internal structure of financial expenditure for agriculture was irrational, and the impact of four kinds of financial expenditure for agriculture on agriculture facilitation and peasant revenue increment were ragged.Therefore, while considering the status quo of financial expenditure for agriculture, four pertinent suggestions were presented in the end of this article in order to improve the performance of financial expenditure for agriculture.