An Empirical Analysis Of Capital Investment Promoting Guangxi Agricultural Growth

Agricultural economic growth has always been one of focusing topics that economists pay attention to and study, and in different historical periods and in different developing stages, economists hold various opinions on the sources of agricultural economic growth. The capital investment plays a crucial role in the development of agricultural economy, and financial investment and credit investment by financial institutions are the main sources of agricultural capital. The paper, based on panel data, from the perspective of credit investment in agriculture and financial expenditure for supporting agriculture, aims to analyze the relations among agricultural credit, financial support in agriculture and agricultural economic growth in Guangxi.First of all, the thesis has discussed the literatures related to the relations among agricultural credit, financial support in agriculture and agricultural economic growth. The discussion of relevant literatures lays a foundation for the analysis below. Secondly, on the basis of theoretical analysis and by combining related statistics, we can make a systematical, comprehensive and descriptive analysis about the status quo of agricultural credit, financial support in agriculture and agricultural economic growth in Guangxi from the aspect of absolute scale and relative scale. Thirdly, on account of C-D production function model and financial elements as well, the paper can build a model that is able to reflect the relations among agricultural credit, financial support in agriculture and agricultural economic growth in Guangxi. Using11years’panel data (from2001to2011) from14prefecture-level cities (including Laibin City merged into Liuzhou City, Chongzuo into Nanning City) in Guangxi, and taking into account the degree of mechanization, urbanization and fixed capital investment in rural areas, we make use of the unit root test and co-integration test of panel data to make an empirical research on the relations among agricultural credit, financial support in agriculture and agricultural economic growth in Guangxi.From the result of study, it can be seen that there exists a long-term and stable relation among agricultural credit, financial support in agriculture and agricultural economic growth in Guangxi. Also, both agricultural credit and financial support in agriculture can play a prominent part in promoting the agricultural economic growth. However, the influence from agricultural credit (output elasticity is0.224678) is greater than that of financial support in agriculture (output elasticity is0.118522). Furthermore, fixed capital investment in rural areas also exerts great influence on Guangxi agricultural economic growth, from which the output elasticity of agricultural economic growth is0.088076; while neither the degree of mechanization nor urbanization has no remarkable impact on Guangxi agricultural economic growth, the output elasticity of urbanization is0.098623which implies that the improvement of urbanization level, to some extent, is beneficial to the growth of agricultural economy.Finally, on the basis of the description of current situation about agricultural credit, financial support in agriculture and agricultural economic growth in Guangxi and of empirical analysis result, we put forward suggestions to push the growth of Guangxi agricultural economy.