Efficiency analysis on fiscal expenditure based on economic growth in rural China

Reasonable structure is the guarantee of efficient fiscal expenditure for agriculture, consequently speed economic development. On the basis of existing literature review, this paper seeks to analyze the efficiency of current fiscal expenditure for agriculture. Using the sample data from 1990 to 2006, it sets up the C-D production function model. After the stationary test and cointegration test to time series variables, the ultimate regression model shows that in fiscal expenditure for agriculture, the output efficiency from high to low is science & technology promotion funds, expenditure for agricultural capital construction and expenditure for supporting agriculture production. Therefore, the government should strengthen Science & Technology Promotion Funds and reduce the rural administrative expenditure, consequently improve the efficiency of fiscal expenditure for agriculture and speed the rural area economic growth.