Influence Of Fiscal And Credit Support For Agriculture On Rural Family Management Income

This paper analyzes the effects of public financial support and credit funds to agriculture on rural family management income.In developing countries,agriculture supporting fiscal and credit policy are the strategic measures to improve agriculture and rural economic development.Agriculture,rural development and farmers are among the top concerns and priorities of the Chinese Government.It is of great economic and social significance to solve this problem,it can get rid of urban-rural differences and comprehensive building a well-off society.Enhance supporting agriculture with fiscal and credit policy in China since 2004,we have made great progress on the issues of agriculture,rural areas and farmers.Agriculture as the main industry of the rural economy,the quality of its development or not,related to the benefits of national economy,to the farmer’s income,and to the development of rural economic.However,agriculture development is faced with the problem of insufficient funds.China takes a large agriculture nation,rural population accounts for the national total population most.The issues of agriculture,rural development and farmers have been the factors of influencing China’s economic and social stability.Enhancing farmers’ income has been an important task of economic development since the reform and opening up.Fiscal policy and monetary policy as two important means of macroeconomic regulation,they play a key role to improve farmers’ income.In order to grasp the relevant policy implementation effect and the deficiencies,and adjust a series of measures,it is necessary to make an empirical analysis on fiscal and credit support for agriculture in recent years.Recently,Zhejiang province makes measures to deepen the reform of rural financial reform,strengthens financial and credit support for agriculture,in order to improve farmers’ income and revitalize the whole rural economy.This paper chooses Zhejiang province as the subject,and creatively combines with fiscal support for agriculture and credit business of rural credit cooperative,analyzing both impact on rural family management income from the funding perspective.In this paper,theoretical research and empirical research are combined.The full thesis is divided into six chapters.The first chapter reviews the relevant literature about fiscal support and credit support for agriculture and the growth of farmers’ income.The second chapter expounds the theoretical basis of fiscal support and credit support for agriculture,and study the mechanism of farmers’ income growth respectively.The third chapter analyzes the current development of fiscal support and credit support for agriculture and experiments in rural financial reform in Zhejiang province.The forth chapter examines the relationship between the fiscal and credit support for agriculture and rural family management income by use of panel data of 52 counties from 2008 to 2014 in Zhejiang.After using F-statistics and Hausman test,white test and excessive identification test,this paper chooses fixed effect model.In order to verify the accuracy of the empirical results,we retest the result by replacing an explained variable and shorten one year.In the end,by drawing on the foreign successful reforms and putting forward the reform proposals under the related agriculture policies of our country,combined with the actual situation in Zhejiang,the existing problems and the conclusion of the empirical analysis of fiscal support and credit support for agriculture in Zhejiang province are given from.The proposals from perspectives of fiscal and credit policy for agriculture,offer some help to solve the rural economic development for capital deficiency and configuration.The paper gives the suggestion on innovation of fiscal support mechanism,perfection of rural financial service system,and coordination of two policies for supporting agriculture.The conclusion is that the fiscal and credit policy for supporting agriculture work well in rural economic area.From 2008 to 2014,fiscal and credit policy for supporting agriculture have significant positive effects on rural family management income.The control variables of rural fixed assets,total power of agriculture machinery and the amount of fertilizer can increase rural family management income,but the rural industrial structure may decrease the income.Compared to the credit policy,fiscal policy works weaker in rural economic development.One reason is that financial expenditure in agriculture has been kept decreasing since 2008.Another reason is that rural credit cooperative has been expanded the rural services.Lack of fund is the key to curb rural economic development.Financial and credit for agriculture can remit the difficulty in farmers’ income.Governments must continue to increase investment in agriculture and rural production,and stimulate social investment by means of well-leveraged government investment to increase farmers’ income.