| This paper tries to investigate the relationship between agricultural fiscal expenditure and the GDP of primary industry in Henan province. Panel data of 18 cities are used. Firstly we analyze the status of each city in the volume of agricultural fiscal expenditure, proportion of agriculture fiscal expenditure and agricultural fiscal expenditure per capita in 18 cities. After that, panel data model are built to investigate the relationship between agricultural fiscal expenditure and the GDP of primary industry in each city. The result shows that agricultural fiscal expenditure contributes to the development of primary industry in most of the cities with different extent: the contribution of agricultural fiscal expenditure to Hebi is the largest while to Zhumadian and Zhoukou is the least. Labor has no significant contribution to the economic growth of agriculture, indicating that the labor in primary industry is relatively affluent. Capital investment is not a significant factor for agricultural economic growth indicating that there is some invalid investment in agriculture. Sown area plays a key role in economic growth of agriculture, so that it should be carefully protected. |
