Impact of Fiscal Expenditure on Agricultural Economic Growth in Hainan Province

Government expenditure on supporting agriculture is an area of investment. And investment is one of the three engines to promote economic growth. So correlation must exist between expenditure on supporting agriculture and agricultural economic growth. The empirical study was made on the relationship between expenditure on supporting agriculture and agricultural economic growth, with a revised Cobb-Douglas production function model, using Hainan's statistical data in the period of 1982-2008. The results showed that Hainan's agricultural GDP relative financial support for agriculture investment flexibility was -0.065 778. In 1982-2008, the average contribution rate of fiscal expenditure to agricultural output reached 6.68%. Therefore, Hainan should increase the scale of financial support for agriculture and improve its efficiency to further promote the development of agricultural economy.