Study On The Impact Of Agricultural Financial Expenditure On Agricultural Economic Growth In Shandong Province

As the largest province of agricultural production in China,Shandong has experienced 40 years of reform and opening up and the scale of the agricultural industry has been expanding.The development of the agricultural industry has made remarkable achievements and ensured the steady progress of economy in the province.The scale of agricultural financial investment has been expanding since 1978,but the growth rate is still not stable.Compared with other major agricultural provinces,the per capita agricultural fiscal expenditure and agricultural fiscal expenditure as a proportion of agricultural GDP in Shandong are both lower.Besides,the regional differences are evenmmore obvious in the province.Firstly,this paper describes the current development of agricultural industry and agricultural fiscal expenditure in Shandong Province and also compares the scale of financial supporting agriculture with other major provinces,then the relevant data selected from Shandong Statistical Yearbook(1980-2016)is tested in a steady and cointegrational way and the impulse response function and variance decomposition are analyzed through vector autoregressive model.The cointegration test shows that there is a long-term cointegration relationship between agricultural expenditure and agricultural economic growth in Shandong Province.The impulse response function indicates that the agricultural output in Shandong Province has a positive impact on agricultural fiscal expenditure.The variance decomposition suggests that agricultural fiscal expenditure contributes a lot to the growth of agricultural industry in Shandong Province.he optimal public scale of agricultural expenditure in Shandong Province was analyzed based on Barrow's theory of optimal public expenditure.It was found that the scale of agricultural expenditure in Shandong Province was lower than the output elasticity of public expenditure(0.135),which indicates that the agricultural expenditure in Shandong Province has not yet reached the optimal size.Finally,based on the research conclusions of this paper and the actual situation of Shandong Province,the corresponding suggestions are put forward,increasing agricultural financial input;establishing a stable growth mechanism for financial supporting for agriculture;giving full play to the guiding role of the government in order to realize the diversification of financing for agricultural development;increasing the investment of agricultural education and scientific research to further improve the level of agricultural modernization;coordinating the allocation of agricultural financial funds to promote the stable development of agricultural industry in various cities of Shandong Province;strengthening the supervision and management of agricultural financial funds to improve the efficiency of it's use;perfecting agricultural insurance system to ensure sustainable development of agricultural production.The research in this paper has certain practical significance for the development of agricultural industry in Shandong Province and also provides a solid theoretical basis for the government's fiscal support policy.