A Study Of The Economic Efficiency Of The Financial Expenditure For Agriculture

The agriculture is of great significance in a country's economical development,but it has a characteristic of weakness as well.The importance and weakness of agriculture demand the supports and protection,especial the fiscal support from government.The realization of Comprehensive well-off society and the construction of socialism new countryside,inevitably request the government to fulfill the public financial function and strengthen the financial support for the agricultural public domain,so as to make up the market's malfunction and create good external environment for agricultural development.The efficiency of financial expenditure for agriculture is the objective evaluation of the effect of the each expenditure to the agriculture and embodies the principle of expenditure-emphasizing the benefit principle in the supporting to agriculture.In recent years,with the earnestly implementing the Central Party and State Council's each policy,Liaoning Province finance has made the positive contribution to enhancing of farmers' incomes,consumption and education,supporting the construction of rural infrastructure,helping the poor to develop, increasing the agricultural synthesis productivity and agricultural supplies,improving agriculture ecological environment,resisting natural disaster and aspect and so on.However, could the increase of financial expenditure for agriculture promote the economic growth of Liaoning agriculture effectively? Is the structure of financial expenditure for agriculture in Liaoning Province reasonable? What are the malpractices that the financial expenditure for agriculture has in the using process?Taking the marginal analysis in the microeconomics,public choice theory in the public economic as well as the connected theory in the institutional economic and the agricultural economics as a foundation,Using the modern econometrics method such as the Unit root test and cointegration test and the data envelope analytic(DEA) method,taking Liaoning Province as an example,through the scale efficiency,the structure efficiency and the fund use efficiency,this thesis carry on the analysis and the appraisal the financial supporting agriculture investment efficiency.Through the scale efficiency analysis,the most superior scale of finance supporting agriculture investment in Liaoning Province may be found,so to guarantee the dynamics of the fiscal investment to agriculture;Through the structure efficiency analysis,each domain of financial expenditure on agriculture may be invested reasonably,so to achieve a reasonable structure of fiscal expenditure on agriculture;Through the use efficiency appraisal,the limited fund putting into production may achieve biggest outputs,as a result,the final aim that optimizes the efficiency of finance supporting agriculture in Liaoning Province,enhance the agriculture disbursement decision level of finance department will be achieved.The main conclusion is as follow:First,using the statistics and the comparative analysis of the time series data of the finance expenditure on supporting agriculture in Liaoning Province,this thesis has made the overall judgement that the scale of the finance expenditure on supporting agriculture is insufficient.Although the absolute scale of the finance expenditure on supporting agriculture in Liaoning Province has undulated in the different stage of agricultural development,as a whole,it still was in the relatively stable growth,which is conformed to the finance elementary theory;through analysis on the proportion of fiscal expenditure for agriculture relative to the gross fiscal expenditure,the comparison between the increase rate of fiscal expenditure for agriculture and that of the fiscal revenue,and the relative expenditure of fiscal expenditure for agriculture,the thesis has come to the conclusion that the relative scale of fiscal expenditure for agriculture is hesitated or downtrend,which has a sizable gap compared with the international standard.Second,the optimal scale of fiscal expenditure for agriculture in Liaoning Province is found,through the theory and the demonstration analysis on the scale efficiency of fiscal expenditure for agriculture.This thesis demonstrates the existence of the optimal scale of fiscal expenditure for agriculture with the endogenous economic growth theory and the magrginal theory.And then through setting up the mathematic model and utilizing the econometric measures,this thesis estimates the optimal should stand as 52.1%of the agricultural GDP.Based on this,it has calculated the marginal output of Liaoning's fiscal expenditure for agriculture since 1980,The result shows that the marginal output of Chinese fiscal Support for agriculture is far more than 1.According to the Barro Principle(1990),the optimal status of the government fiscal expenditure is MPG=1.If the marginal output is more than 1,it shows that the gross government expenditure is insufficient,and continuous increase of the marginal fiscal expenditure would be efficient and can earn more net profits.The fact that the marginal output of Liaoning's fiscal expenditure for agriculture is far more than 1,does not only demonstrate that fiscal expenditure for agriculture in Liaoning Province is productive,but also that fiscal expenditure for agriculture is far from enough and should be further increased.Based on the estimated optimal scale of fiscal expenditure for agriculture, and taking the stiff restriction into consideration,the thesis has designed the optimal orientation growth model in 2020 of fiscal expenditure for agriculture and proposed the proper and practical ways for Liaoning Province to realize the increase of fiscal expenditure for agriculture.Third,the conclusion that the structure of the fiscal expenditure for agriculture in Liaoning Province is warped is obtained,through the statistics and the comparative analysis to the overall evolution of he structure of the fiscal expenditure for agriculture.The expenditure of agriculture,forestry,grazing and fishing business and supporting agricultural production is highest,but contribute least to the agricultural GDP and farmer's incomes;The basic agricultural construction expenditure is placed in the middle and the contribution to agriculture GDP and farmers' incomes is relative high;The expenditure of agricultural science and technology takes the lowest proportion,but its contribute ratio to the agricultural GDP and farmer's incomes is the highest.Forth,the conclusion that the structure of the fiscal expenditure for agriculture in Liaoning Province is warped is educed more,through the theoretical analysis and the measurement model result and the practice confirmation.This part has also demonstrates the existence of the optimal structure of fiscal expenditure for agriculture with the endogenous economic growth theory and the magrginal theory.Based on this,using mathematical and econometric measures,it makes empirical study of the effects of expenditures over the increase target of agricultural GDP.The elasticity of expenditure of agriculture,forestry,grazing and fishing business and supporting agricultural production to the agricultural GDP is highest,which is safeguard of improving the condition of agricultural scientific research,enlarging the scope of technical promotion,enhancing the ability of service.The basic agricultural construction expenditure is not remarkable and the coefficient of agricultural capital storage is a negative number,which become the disadvantage factor to increase agriculture GDP.The possibly reason for these may be that capital construction expenditure itself has the low efficiency in the direction of investment and the process of fund management.The variables of the expenditure of agricultural science and technology have not been able to enter the regression equation,which had reflected the problem that the investments in agricultural science and technology are quite few,and transforms of the agricultural science and technology are quite low.