Study On Hainan Province Fiscal Expenditures For Supporting Agriculture And Agriculture Economic Growth

Agriculture is somewhat a public product; its natural inferiority is more obvious than other industries; thus only with the protection of the government can agriculture survive in the restriction of the nature, the market and many other factors. It's popular in the world that government offer fiscal expenditure to protect and support agriculture and it is also the most direct and important way of China. At present, the financial expenditure on agricultural has become an important source of funding for agricultural production development. It is of great significance to promote the development of agricultural economy by studying the effect of financial expenditure on agricultural economic growth.Hainan is an agriculture-based province; in recent years, the scale of financial expenditure on agricultural has been expanding. But there are still some problems in agriculture financial expenditure, for example: the growth is gradually reduced, the relative scale is not enough and the scale is too small than the national average.Aiming at providingHainan government with suggestions in agriculture financial expenditure,this paper is organized in the following three parts: firstly, this paper takes the data of the total financial expenditure on agricultural from 1992 to 2015 in Hainan Province as the subject. Based on the C-D production function and VAR model, this paper makes an empirical analysis on the relationship between the scale of fiscal support expenditure and agricultural economic growth in Hainan Province. Cointegration test results show that there is a long-term stable equilibrium relationship between fiscal expenditure and agricultural economic growth in Hainan Province; Impulse response analysis results show that Hainan Province, the impact of fiscal expenditure on agricultural economic growth positive response, The variance decomposition results show that the financial support for agriculture has a sustained contribution to the growth of agricultural economy in Hainan Province, but the contribution is small.Secondly, although this paper takes the data from 1992 to 2015 in Hainan Province as the subject to analysis the total financial expenditure on agricultural,taking into account the changes in statistical caliber between 1996 and 2007 and the operability of model building, this paper chooses the structural data of the expenditure of eight sub-projects of Hainan Province from 2007 to 2015 as the subject. Based on the gray relational analysis,an empirical study on the relationship between the expenditure structure of agriculture and agricultural growth in Hainan Province ia made. The results show that the financial expenditure for supporting agriculture has the closet relationship with agricultural economy growth, followed by agriculture expenditure, water conservancy spending.Thirdly, combined with the conclusion and the actual situation of Hainan Province,the article proposed three major aspects of the allocation of policy recommendations: the reasonable increase in the size of fiscal and agricultural investment; bettering the structure of financial support for agriculture to improve the efficiency of financial support for agriculture; and improving the financial support fund management system to protect the financial expenditure.