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Government’s Fiscal Expenditures in Agriculture and Rural Economic Growth

Author: ZhangXinYu
Tutor: LiShu
School: Southwest University of Political Science
Course: National Economics
Keywords: Finances Agricultural expenditure Rural economics
CLC: F320
Type: Master's thesis
Year: 2009
Downloads: 306
Quote: 1
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Abstract

As the primary industry of agriculture is a national stability and development,it is directly related to the development of good and bad quality of the entire national economy.At the same time,the agricultural market is the closest to perfect competition market,it can be said is the public nature of agricultural products,the Government’s fiscal expenditure on agriculture is not just the Government’s agricultural support and the performance of one form of input,but also reflects a country the importance of agriculture,agricultural expenditure from the financial, economic development in rural areas are out of the question.China as a developing country,is a large,agricultural country,and the agricultural population accounts for a large part of agriculture in the national economy,therefore the development of a basic position.Since reform and opening up 30 years in the course of economic development,agriculture has achieved progress and achievements,not only agricultural production capacity has been enhanced,and the quality of life for the majority of farmers are also a significant improvement in the rural economy has been significantly increase in grain and other farm products at the same time increase the output,with only 7%of the world’s arable land to feed 20 percent of the world’s population,to promote and protect the strong national economy continued to grow rapidly.But China’s western region has lagged far behind economic development in the eastern region,in 1999 China put forward the western development strategy,in the development of the western economy and to narrow the gap between the eastern region and of course can not be separated from the primary industry to develop in light of the current China is in the traditional agriculture to modern agriculture into the transitional period,expenditure on agricultural research on rural finance economic growth, contribute to the limited funds of the rational use of agricultural efficiency,and promote the healthy development of the rural economy,to support the protection of agricultural of great significance.This article first foreign financial expenditure on the relevant theory and domestic fiscal spending on agriculture and rural economic growth,Review of studies for the analysis of follow-up study provides the theoretical basis and methods.According to the western region and 12 provinces,municipalities and autonomous regions of the data,combined with a comparative analysis of empirical methods,as well as from the expenditure of the scale,the role of the mechanism,the efficiency of three areas of expenditure in detail,the specific analysis of the western region agricultural expenditure of the financial growth of the rural economy situation, aimed at the problems and put forward policy proposals to improve and hope that development of the western region with the opportunity to accelerate growth in the western region has been inspired by the rural economy.Study shows that:the scale from the expenditure point of view,the western region financial agricultural expenditures significantly increase the absolute size,although the growth of 12 provinces each situation is different,but still compared to the base period with attention achievements.Relative size of a large room,the overall upward trend,the growth rate fluctuations in different stages.From agriculture to rural economic growth in spending mechanism,the financial expenditure in agriculture,mainly from the primitive accumulation of capital,technological innovation,transfer payments to promote several aspects of agriculture and rural economic development,the western region,taking into account the geographical and historical reasons,etc.There is a certain rationality and the possibility to further improve.From the efficiency of expenditure,the fiscal expenditure on agriculture and rural economic growth is not high,this is our country’s current financial management of agricultural expenditure of funds of the system is not perfect.Finally,the light of the above,put forward a sound agricultural expenditure of China’s financial system,optimize its role in rural economic growth mechanisms related policy recommendations.

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