Study On The Relationship Between Agricultural Fiscal Policy, Economic Growth And Income Inequality

China is a populous developing country, a larger proportion of the rural population, how to deal with the "three rural issues" has always been a concern to the government and academia hot issue. Since the reform and opening up, the rural economy has been greatly developed in2006abolition of agricultural tax, financial support for agriculture and agricultural price support policies to improve the income of rural residents play an important role. As of2013, China’s agricultural output has exceeded4trillion yuan, but with the rapid increase in rural incomes, followed by a widening income gap in rural areas, the paper calculated the Lorenz curve obtained in2013rural Gini coefficient has over0.4international warning line. Agricultural policy, especially in the current financial support for agriculture, for reasonable promote rural economic growth and optimizing the distribution of income of rural residents have an extremely important influence and role. With the continued economic development, rural economic growth and income inequality irreconcilable issues have been highlighted, this article from the perspective of financial support for agriculture, integrated policy factors to resolve the practical effect of the economic development and income imbalances brought about, which will to some extent, help to further provide relevant theoretical and empirical basis for the formulation and implementation of agricultural policy, give full play to the role of agricultural policies to promote and guide the development of the rural economy, and gradually realize the sustained and healthy development of the rural economy has important theoretical and practical significance.The current environment, although the economy is growing rapidly, but the income level of rural residents particularly highlighted imbalances, financial support for agriculture policy as a means to regulate the functions of the Government’s main economic development in rural areas did not significantly help ease the income gap exacerbate this trend. People gradually began to reflect on the purpose of agricultural policy simple pursuit of farmers’ income growth, or make more rational economic development, living in more harmony and happiness? How to make agricultural policy more efficient? These are worth exploring academia serious problem is related to the key agricultural policy for future development.This paper reviewed on the basis of domestic and foreign agricultural policies, rural economic growth and income inequality research, combining economic theory related to the specific characteristics of China’s rural base and, based on the provincial level from the baseline model, to establish a policy for financial support for agriculture rural economic panel simultaneous equation model-driven, quantitative analysis of the relationship between rural economic development and income disparities, and policy factors that affect both effects, using empirical research methods were analyzed simultaneous equations demonstration.The first part is the introduction, first introduces the background and significance of China in recent years on rural economic growth and income inequality, then introduced the progress of the research framework research institutions as well as related research and analysis in this article. The second part introduces the research status on agricultural economic growth, economic policy and income inequality and other aspects. The third part describes the empirical analysis relies on econometric methods, and advantages of this method and its statistical properties. The fourth part focuses on the core equation and model structure panel simultaneous equations model established in this paper, selection and processing, and analysis of the model results include variables. The fifth part corresponding policy recommendations related theories on the model results, and summarizes the characteristics of the innovation and the development model in this paper and the need for further improvement.The main conclusions are:(1) At present, between China’s rural economic growth and income differences in a way does have some relevance, mutual influence, specifically in the economic growth will increase the uneven distribution of income the same time, the income imbalance has become an obstacle to the development of rural economy.(2) Fiscal Policy for government intervention as the primary means of economic development in rural areas is an important factor in rural economic growth and income inequality, and inequality were significantly positive correlation with rural economic growth and income.(3) made by the current government’s fiscal policy is mainly dependent on agriculture rural economic growth and widening income inequality did not make enough attention.