The Relation Between Agricultural Economic Growth And Investment Of Agricultural Research And Extension In China

Agricultural economic growth model based on agricultural research and extension investment was built according to neoclassical model and quality innovation model. Convergence of primary agricultural economic was discussed in this agricultural economic growth model. Primary agricultural economic will be convergence on equilibrium point because of the laws of diminishing marginal return and diminishing marginal utility. In this equilibrium point, average agricultural capital and average consume and average agricultural output will be steady. But the total agricultural capita and total consume and total agricultural output will grow by the speed of agricultural people.Second, the role of technology in agricultural economic growth was discussed in this paper. Technological advances in agriculture offset the effect of agricultural diminishing marginal return. The continued increase of agricultural inputs has become possible and the agricultural economic sustained growth has become possible too. Because of the introduction of agricultural technology, we can explain the long-term sustained growth of agricultural economic. We broke through the neoclassical economic theory on economic growth that in the balanced growth path, the economic growth rate is only the population growth rate. The fact of Agricultural sustained economic growth is powerfully explained.Third, in quality innovation model we explained the reasons for the progress of agricultural technology,which is the results of agricultural research investment and extension investment in agriculture. Agricultural research production and agricultural production are closely linked but the two entirely different production processes. Based on this understanding, we created the agricultural output and agricultural research output function. Then, in the mode of agricultural output function and agricultural output function, we discussed the relationship between agriculture research investment, agricultural extension investment and agricultural economic growth. We answered why and how agricultural research investment and extension investment promote the agricultural economic growth.Finally, with the data of China's agricultural economy and agricultural research and extension investment from 1985 to 2005, the research and extension investment-based agricultural economic growth theory was verified. The relationship between agricultural economic growth and investment of agricultural research and extension was quantitatively studied. The internal rate of return of China's agricultural research and extension investment was calculated. Through the empirical test of agricultural economic growth model, we fund that both agricultural research investment and agricultural extension investment promote the growth of agricultural economic by prompting the agricultural TFP. However, agricultural extension investment is more important than agricultural research investment.