Research on the Relationship between Agricultural Production and Economic Growth in Hunan Province

In order to discuss the relationship between agricultural production and economic growth in Hunan province,this paper makes the unit root rest and the co-integration test according to the corresponding data from 1949 to 2007 in Hunan province. The results show that there is a long-term stable equilibrium relationship between agricultural production and economic growth. If the agricultural production increases by 1%,the economy would increase by 1.91%. The Granger causality test shows that there exits two-way Granger causality between agricultural production and economic growth which promotes each other. The impulse response function and variance decomposition show that agricultural production plays an important role in economic growth.