Contribution of fiscal expenditure on supporting agriculture to promoting agricultural economic growth —empirical study based on Northeast panel data

Northeast is the conventional agriculture region in China. Its agriculture economy development is of great importance to the whole national economy. This paper constructs a revised C-D production function model with northeastern agriculture based on panel data from 1978 to 2007. The empirical result shows that fiscal expenditure on supporting agriculture can strengthen northeastern agriculture growth. And when fiscal expenditure on supporting agriculture arises by 1%, agriculture increases by 0.4733%. As a result, in order to promote northeastern agriculture growth, percentage and efficiency of fiscal expenditure on supporting agriculture should be strengthened and improved. At the same time, relative government sections must try best to control the fluctuation of factors that influence agriculture output, decrease uncertainty, and ensure the continuity and stability of fiscal expenditure on supporting agriculture.