An Empirical Analysis Of The Relationship Between The Fiscal Expenditure On Suppoting Agriculture And Agricultural Economic Growth In Henan Province

Compared with other industries,agriculture has certain public product attributes,and due to its natural weakness,its development is affected by market environment,natural environment and other factors,so its development needs the state support and protection.At present,the fiscal expenditure approach is generally adopted by all the countries to support and protect agriculture,and the most important and direct way of China to support and protect agriculture is also the fiscal expenditure at all levels.The funds of China's agricultural production and development mainly come from the fiscal expenditure on agriculture at all levels.Most of the studies on the relationship between the fiscal expenditure on supporting agriculture and agricultural economic growth are carried out at the national level,but few of them focus on provinces,especially Henan province.As a big agricultural province,Henan province has been spending more and more on supporting agriculture in recent years,and the structure of fiscal expenditure on supporting agriculture has also changed,however,the effects needs further analyses.Therefore,it is of great theoretical and practical significance to study the empirical analysis of the relationship between the scale and structure of fiscal expenditure on supporting agriculture and agricultural economic growth in Henan province.In this paper,data related to financial support to agriculture from 1987 to 2017 were selected.Firstly,the scale and structure of fiscal expenditure on supporting agriculture and the status quo of agricultural economic growth in Henan province were analyzed through charts and other tools.Then,the empirical analysis of the relationship between the scale of financial support to agriculture and agricultural economic growth was conducted by using VAR model,and according to the results of Johansen co-integration test,the relationship between them is long-term,stable and balanced,and its output elastic coefficient is 0.42.According to Granger causality test,there is a reciprocal Granger causality between the fiscal expenditure on supporting agriculture and agricultural economic growth.At the same time,the calculation results of the marginal output of the fiscal expenditure on agriculture in Henan province of each year show that they are all bigger than 1,which indicates that the scale of the fiscal expenditure on agriculture in Henan province is not optimal and further input is needed.In addition,this paper also adopts the gray relational degree to analyze the relationship between the fiscal expenditure on supporting agriculture and the agricultural economic growth,and the results show that the correlation degree of poverty alleviation expenditure is the largest,reaching 0.82.Finally,the author put forward some reasonable suggestions with the combination of the status quo of Henan province's fiscal expenditure on supporting agriculture and the results of empirical analysis,hoping to provide some reference for Henan province to formulate policies on fiscal expenditure on supporting agriculture in the future.