The Impact of Fiscal Support for Agriculture on Economic Development: Evidence from Fujian Province

Abstract

Since the strategy of rural revitalization was put forward for the first time, it is necessary to deal with the issues related to the "three rural areas" in order to realize socialist modernization, and the government has focused on the financial expenditure on agriculture, so reasonable planning of financial support for agriculture is crucial to stabilize the development of agriculture. Agriculture, one of the most basic industries in the economic development, plays an important role in the growing economy. It has strong externalities, but its vulnerability dictates that it must be supported by government policies. Effective fiscal measures are essential to promote agricultural and economic development. In this sense, this paper collects the data of Fujian Province from 2010 to 2019. Firstly, the paper analyzes the current situation of financial support for agriculture in Fujian Province through the absolute scale and relative scale of financial support for agriculture and the differences in economic development of various cities in the province, and explores the problems of economic growth; secondly, we conduct the trend and correlation analysis of the scale of financial support for agriculture expenditure, and examine the impact of agricultural financial support on economic growth. Finally, we propose some feasible policy recommendations regarding financial support for agriculture to promote economic growth.