Agricultural Credit,Fiscal Expenditure For Agriculture And Rural Economic Growth

Agriculture is the basic industry in China, but also is a weak industry. However, the development of agriculture there is always the phenomenon of lack of funds.The agricultural credit and the fiscal expenditure for agriculture are the main source of agricultural financing, and the government has constantly increased the fiscal expenditure on agriculture and the agricultural credit increased in recent years. This paper will base on panel data to analyse the relationship between agricultural credit, fiscal expenditure for agriculture and regional rural economic growth.Firstly, The paper gives a good sort of paper review to the relevant topic of agricultural credit, fiscal expenditure for agriculture and rural economic growth, which provides a solid base for the later part. Secondly, based on the theoretical analysis and the relevant data, and from multiple angles, this paper gives a systematic and comprehensive comparative analysis of the present situation of the agricultural credit, fiscal expenditure for agriculture and rural economic growth by descriptive statistical analysis method.Thirdly, the paper establishes the empirical models about the relationship between agricultural credit, fiscal expenditure for agriculture and rural economic growth.Based on China, eastern region, central region and western region provincial data, the paper uses panel data unit root test, co-integration tests and error correction models for panel data to analysis the short-term and long-term relationship between agricultural credit, fiscal expenditure for agriculture and rural economic growth in three regions of China.According to the reseach, agricultural credit and fiscal expenditure for agriculture both have positive and statistically significant effect on rural economic growth, but the function of fiscal expenditure for agriculture is obviously stronger than the function of agricultural credit; Moreover, agricultural credit and fiscal expenditure for agriculture have different influence of rural economic growth among different regions:In the eastern region and central region, relationship between agricultural credit, fiscal expenditure for agriculture and rural economic growth is not only a significant and long-term equilibrium one, but also a short-term causal one.In the western region, fiscal expenditure for agriculture and rural economic growth have both a long-term equilibrium relationship and a short-term causal relationship, agricultural credit and rural economic growth have only a long-term equilibrium relationship, but no significant short-term causal relationship. What's more, the contributions of agricultural credit and fiscal expenditure for agriculture to rural economic growth have regional differences, all regions'agricultural credit have positive effect on rural economic growth, with the western region affected most, followed by the eastern region and the middle region; all regions'fiscal expenditure for agriculture also have positive effect on rural economic growth, with the middle region affected most, followed by the western region and the eastern region.At last, based on the result of the present situation's analysis and the conclusion of the empirical analysis in the relationship between gricultural credit, fiscal expenditure for agriculture and rural economic growth, the paper discuss the exist problems in the process of agricultural credit policy making ang fiscal expenditure for agriculture policy making, then gives several reasonable suggestions on policy.The innovation of the paper lies as follows:Firstly, it gives a systematic and comprehensive analysis of the present situation of the agricultural credit, fiscal expenditure for agriculture and rural economic growth, clear to their initial analysis and objective analysis the problems and reasons of China's finance policy and fiscal policy. Secondly, it studies the relationships among agricultural credit, fiscal expenditure for agriculture and rural economic growth in the long-term applying panel data cointegration analysis, unit root test and error correction model. Thirdly, it systematically compares the relationship between the agricultural credit, fiscal expenditure for agriculture and rural economic growth of whole country, eastern, central and western regions.The conclusion of the study shows that there are significant differences between different regions.Of course, there are still some deficiencies in this paper, it needs further study in the future.