Zhejiang Agricultural Growth In The Financial Contribution Of The Agricultural Expenditure And Its Change

Agriculture plays an important role in the national economy both for its economic and societal benefits. The economy and society of a country can not develop healthily without the stabilization and development of agriculture. While China has already put forward "the Issues of Countryside, Agriculture and Farmer" as a crucial mission in the next decade, to increase the product and growth of agriculture is the essential way at this time. Nevertheless we must see clearly the reality that Zhejiang Province is facing the challenges of resource scarcity, investment insufficiency and international competition. Thus fiscal expenditure will become the propellent and indemnitor of agricultural growth.Based on the macro background and practical demand above, this dissertation chooses to analyze the contribution of fiscal expenditure in the agriculture growth. At first the dissertation integrates the existing literature of fiscal expenditure of agriculture and economic growth theory. In the principle part, it analyzes the amount, structure of fical expenditure of agriculture in Zhejiang with relative data. It also measures the contribution which the fiscal expenditure made to agriculture product, using the method of Granger Causality Analysis and C-D function. Finally it put forward a few political suggestions. The econometric tool used in this dissertation is EViews 5.0.The whole dissertation contains five parts:Part one, analyzes the macro background of this research, and illustrates the theoretical and practical significance. It also introduces the main content of this dissertation.Part two, summarizes the existing theory and literature relative to this research as the theoretical foundation of empirical study.Part three, describes the historical and current situation of fiscal expenditure of agriculture in Zhejiang Province. The dissertation uses data from 1985 to 2005 to describe the total and relative amount of fiscal expenditure of agriculture and the structure of it. It concludes some initial conclusions in this part.Part four, time series empirical study. At the beginning of this part, the author makes a Granger Causality Analysis to convince that fiscal expenditure indeed contribute to agricultural growth. Then the dissertation constucts a C-D founction to mearsure the amount that fical expenditure contributes to agriculture growth. From the results of empirical study, the dissertation finds out that the non-production part of fiscal expenditure does not make contributions to agricultural growth. And the mobility rule of the contribution has not yet come into being.Part five, based on the theoretical foundation of part two and the empirical study of part three and part four, the dissertation proposes some suggestions on the scale, direction, structure and supervising of fiscal expenditure of agriculture. At last it concludes the contribution and limitation of the research.