Empirical Research On The Relationship Between Financial Agricultural Investment And Agricultural Economic Growth In China

Agriculture is the foundation of the national economy, and a basic guarantee for social stability and prosperity of national security, and agricultural development levels directly influence all aspects of economic development. Agriculture weakness has decided that agricultural must obtain the necessary support and protection, whereas the expenditure for agriculture by the national finance is a crucial act to support and protect. Financial agriculture investment is an important and effective method to improve conditions for agricultural production, actively promote the transformation to agriculture modernization, improve agriculture integrated production capacity, and promote the sustained and steady growth of agricultural production. At the same time, economic benefit in agricultural production is a fundament and guarantee for agricultural development which has decided the level of economical and social development in a great extent and agriculture integrated production capacity. Therefore, national enlargement to the investment of agriculture, scientific management agricultural investment funds, raise utilization efficiency of agricultural investment funds, increase agricultural investment benefit, promote agricultural economic growth, and realize the good momentum of rapid and sound, sustained and steady development for agriculture. Because of this, researching the relationship between agricultural investment and agricultural economic growth is very important. It has an important strategic meaning and realistic significance for optimizing agricultural investment structure, modifying agricultural investment orientation, increase agricultural investment efficiency, promote agricultural economic growth, and solving the problems facing agriculture, rural areas and farmers.The thesis focuses on the relationship between fiscal agricultural investment and agricultural economic growth. Based on amount of literature both abroad and domestic, firstly, this paper empirical analyzes the current status of fiscal agricultural investment in the aspect of scale and structure in China by using a huge mass of data. Secondly, on the base of a great lot of statistical data 1978 to 2008, this paper empirical analyzes the long-term equilibrium relationship between fiscal agricultural investment and agricultural economic growth with unit root test, co-integration test and granger causality test. Thirdly, Application of C.W.Cobb-P.H.Douglas function Mmodel to positive analyse the contribution of fiscal agricultural investment to agricultural economic growth. Finally, it provides some countermeasures that agricultural investment promote agricultural economic growth in the follow six aspects: increasing the total size, optimizing the structure, expanding fund resources, innovating investment management system, strengthening fund management and perfecting the macro-control system of agricultural investment.The innovation of this article lies in:First, using unit root test, co-integration test and granger causality test to empirical analyzes the long-term equilibrium relationship between fiscal agricultural investment and agricultural economic growth. And application of C.W.Cobb-P.H.Douglas function Mmodel to positive analyse the contribution of fiscal agricultural investment to agricultural economic growth. Research method is relatively original.Second, made on countermeasure for priority area of fiscal agricultural investment is agricultural infrastructure construction (focusing on farmland irrigation facilities).