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

Shuai Chen, Jiameng Yang () and Xinyi Kang
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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

Agriculture, 2023, vol. 13, issue 4, 1-22

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.

Keywords: fiscal support for agriculture; efficiency of agricultural circular economy; super-efficiency DEA; panel data model (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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