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Does fiscal expenditure promote green agricultural productivity gains: An investigation on corn production

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  • Deng, Haiyan
  • Zheng, Wangyi
  • Shen, Zhiyang
  • Štreimikienė, Dalia

Abstract

Promoting green and low-carbon development in agriculture is the key to achieving high-quality development, in which financial expenditure on agriculture is an essential means to support its green development. This study first estimates the green productivity of twenty corn-growing provinces by the by-production model with Luenberger total factor productivity indicator in China from 2004 to 2018. Then the impact of fiscal spending on its green productivity growth and its mechanism are investigated by the econometric models. The results show that the average green total factor productivity indicator of China's twenty corn-growing provinces from 2004 to 2018 is 2.54%. The share of fiscal expenditure stock in agricultural output has a positive but insignificant direct impact on green productivity, whereas it significantly influences corn GTFP mainly through enhancing rural infrastructure. The share of fiscal expenditure stock has a larger effect on the green productivity in small corn-growing provinces. The findings suggest that the government should provide financial support suitable for local agricultural development.

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  • Deng, Haiyan & Zheng, Wangyi & Shen, Zhiyang & Štreimikienė, Dalia, 2023. "Does fiscal expenditure promote green agricultural productivity gains: An investigation on corn production," Applied Energy, Elsevier, vol. 334(C).
    • Handle: RePEc:eee:appene:v:334:y:2023:i:c:s0306261923000302
    DOI: 10.1016/j.apenergy.2023.120666
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    3. Zhou Zhou & Jianqiang Duan & Shaoqing Geng & Ran Li, 2023. "Spatial Network and Driving Factors of Agricultural Green Total Factor Productivity in China," Energies, MDPI, vol. 16(14), pages 1-26, July.
    4. Jianlin Wang & Junbo Tong & Zhong Fang, 2024. "Assessing the Drivers of Sustained Agricultural Economic Development in China: Agricultural Productivity and Poverty Reduction Efficiency," Sustainability, MDPI, vol. 16(5), pages 1-18, March.
    5. Zhenyu Qi & Yuezhou You, 2024. "The Impact of the Rural Digital Economy on Agricultural Green Development and Its Mechanism: Empirical Evidence from China," Sustainability, MDPI, vol. 16(9), pages 1-23, April.
    6. Huang, Tianwei & Yang, Lei & Liu, Yufei & Liu, Haibing, 2023. "Dutch disease revisited: China's provincial data perspective with the role of green finance and technology peak," Resources Policy, Elsevier, vol. 83(C).
    7. Feng Zhou & Chunhui Wen, 2023. "Research on the Level of Agricultural Green Development, Regional Disparities, and Dynamic Distribution Evolution in China from the Perspective of Sustainable Development," Agriculture, MDPI, vol. 13(7), pages 1-47, July.
    8. Dahao Guo & Yuancheng Lin & Min Wang & Zirou Huang, 2023. "Spatial Distribution Pattern, Evolution and Influencing Mechanism of Ecological Farms in China," Land, MDPI, vol. 12(7), pages 1-20, July.

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