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Effect of Fiscal Expenditure for Supporting Agriculture on Agricultural Economic Efficiency in Central China—A Case Study of Henan Province

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  • Shuai Chen

    (School of Business, Jinling Institute of Technology, Nanjing 211169, China)

  • Jiameng Yang

    (College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Xinyi Kang

    (Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

Abstract

The policy guidance and financial support for industrial development from public finance provide an important guarantee for practicing green and circular development of agriculture. By sorting out the development context of fiscal support for agriculture in Henan province in different historical stages, this paper analyzes the development status of fiscal support for agriculture and the agricultural circular economy in the province. Relying on data envelopment analysis (DEA), it measures the efficiency of the agricultural circular economy in Henan province in 2013–2019 using the Charnes, Cooper, and Rhodes (CCR) model, the Banker, Charnes, and Cooper (BCC) model, and super-efficiency DEA models and empirically analyzes the effect of the fiscal expenditure for supporting agriculture on the efficiency of the agricultural circular economy using the fixed effect model. According to the results, (1) the expenditure on comprehensive agricultural development of Henan Province was mainly supported by the government’s fiscal funds to such a degree that the proportion of fiscal funds from the central government exceeded 40% throughout the year. Particular stress was laid on the land governance projects of comprehensive agricultural development in the province. (2) The overall development level of the agricultural circular economy in Henan Province was low, and there were considerable gaps between cities (counties). Under the super-efficiency DEA model, only Hebi City, which ranked first in terms of average efficiency, achieved relative efficiency. (3) The fiscal expenditure for supporting agriculture had a positive incentive effect on the efficiency of the agricultural circular economy in Henan province, and the incentive effect became more significant after the time effect was controlled. Accordingly, this paper puts forward some targeted policy suggestions, which enrich the existing research on fiscal support for agriculture and agricultural circular economy at both theoretical and practical levels.

Suggested Citation

  • Shuai Chen & Jiameng Yang & Xinyi Kang, 2023. "Effect of Fiscal Expenditure for Supporting Agriculture on Agricultural Economic Efficiency in Central China—A Case Study of Henan Province," Agriculture, MDPI, vol. 13(4), pages 1-22, April.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:4:p:822-:d:1114103
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    Cited by:

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    2. William Djamfa Mbiakop & Hlalefang Khobai & Djomo Choumbou Raoul Fani, 2023. "Response of Agriculture Production to Change of Foreign Direct Investment and Public Agriculture Expenditure in South Africa: A Monte Carlo Simulation Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 13(6), pages 1-7, November.

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