Finance Supporting Agriculture Spending Effect Analysis Of The Agricultural Economic Growth

Agriculture has dominated the foundation position in our country,determines the healthy development of national economy,and it is a prerequisite for stable development of other industries.but in many Chinese region, Backward mode of agricultural production, agricultural production mainly depends on natural conditions,the position of agriculture as the foundation of the economy is weak.according to the classical growth theory,an important source of economic growth is capital element.the financial support funds will inevitably become an important force for agricultural development,because of the government have the financial strength and agriculture is quasi-public products.To promote agricultural growth and to make our country from an agricultural country into a real agricultural powerhouse,we must change the mode of agricultural production,accelerate the transformation of traditional agriculture to modern agriculture.This article based on effect of fiscal funds for agricultural economic growth related theory research,analyzes the agricultural economy development situation and the present situation of financial policies for supporting agriculture in Shanxi Province,and then through the empirical analysis method research the scale and structure of the financial funds for supporting agriculture,measure the extent of fiscal expenditure on agricultural economic growth,meanwhile,using the panel data econometric model on different levels of the government’s funds for supporting agriculture’s contribution to the agricultural economic growth factor,final conclusions are as follows : First,the absolute scale and relative scale of agricultural financial subsidies in Shanxi Province has increased significantly,but the absolute size of growth is not stable,relative scale is still in lower level; Second, finance support agriculture expenditure on agriculture have obvious role in promoting economic growth, expenditure performance of county(town) government spending significantly higher than the municipal and provincial government expenditure performance.But due to the mismatch of the grassroots government financial authority and powers, andthe economic downturn in Shanxi Province in recent years, and grassroots leadership consciousness is weak,etc.resulting in grassroots government low efficiency of fiscal spending so that can not guarantee the exact implementation of agriculture policy.Based on the above issues,this article based on the content of the platform "Thirteen Five Year Plan",combined with modern agricultural development requirements,in order to promote agricultural economic growth in Shanxi Province,accelerate Shanxi agricultural economic growth,put forward some policy suggestions such as increase financial investment,adjust the structure of agriculture expenditure,establish the evaluation system and improve the agricultural industry chain,etc.The innovation of this article lies in the innovation of research perspective,from the perspective of government classification,research the influence of fiscal expenditure for supporting agriculture in Shanxi Province to agricultural economic growth.This will be conducive to optimize financial capital expenditure structure vertically,to some extent, also can enrich the existing theoretical research system.however, due to limitations of data acquisition,lead to less data samples,damaged data continuity and integrity,to a certain extent, this affected the accuracy of the empirical conclusions,is also the author needs to continue to improve in the future research.