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2010•Journal of Guangxi University of Finance and EconomicsRequires access

Fiscal Decentralization,Fiscal Expenditure for Agriculture and Agriculture Economic Growth

Cai Zhong-yan

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Abstract

By using China's provincial panel data of 1997 to 2006,this paper scanned the relationship between fiscal decentralization,fiscal expenditure for agriculture and agriculture economic growth based on the unit root tests and co-integration tests.The result showed that fiscal expenditure for agriculture had a prominent effect on the agriculture economic growth and a negative correlation existed between fiscal decentralization and agriculture economic growth.Moreover,after analyzing the reasons of the result,the empirical results indicated that fiscal decentralization had influence on agriculture economic growth through fiscal expenditure for agriculture.

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What this paper is about

By using China's provincial panel data of 1997 to 2006,this paper scanned the relationship between fiscal decentralization,fiscal expenditure for agriculture and agriculture economic growth based on the unit root tests and co-integration tests.The result showed that fiscal expenditure for agriculture had a prominent effect on the agriculture economic growth and a negative correlation existed between fiscal decentralization and agriculture economic growth.Moreover,after analyzing the reasons of the result,the empirical results indicated that fiscal decentralization had influence on agriculture economic growth through fiscal expenditure for agriculture.

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Available abstract

By using China's provincial panel data of 1997 to 2006,this paper scanned the relationship between fiscal decentralization,fiscal expenditure for agriculture and agriculture economic growth based on the unit root tests and co-integration tests.The result showed that fiscal expenditure for agriculture had a prominent effect on the agriculture economic growth and a negative correlation existed between fiscal decentralization and agriculture economic growth.Moreover,after analyzing the reasons of the result,the empirical results indicated that fiscal decentralization had influence on agriculture economic growth through fiscal expenditure for agriculture.

Key concepts: Decentralization, Agriculture, Economics, Fiscal union, Panel data, Fiscal imbalance, China, Fiscal policy

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