Evolving Public Expenditure in Chinese Agriculture: Definition, Pattern, Composition, and Mechanism

38 Pages Posted: 7 Jan 2015

See all articles by Bingxin Yu

Bingxin Yu

International Food Policy Research Institute (IFPRI)

Kevin Chen

International Food Policy Research Institute (IFPRI)

Yumei Zhang

Agricultural Information Institute of Chinese Academy of Agricultural Sciences

Haisen Zhang

University of International Business and Economics, Beijing

Date Written: December 31, 2014

Abstract

The Chinese economy has recently experienced a rapid and fundamental transformation, and the public expenditure on agriculture has also changed to reflect shifts in policy priorities. This paper reviewed public agricultural expenditure in a comprehensive way using detailed expenditure data at different administrative levels. The paper found that public expenditure for agriculture has increased steadily in China; however, the definition of agricultural spending might not precisely measure resources allocated to agricultural production. Some unique features of Chinese agricultural expenditure are identified, namely high decentralization and substantial intergovernmental transfer. The highly decentralized and hierarchical administrative system caused fragmentation in budget and implementation, resulting in rampant inefficiencies. Government expenditure also exhibits considerable regional disparity. This study recommends improving the fiscal system by rebalancing expenditure with revenues, prioritizing agricultural expenditure, and addressing regional disparities.

Keywords: public expenditure, agriculture, China, decentralization, transfer, regional disparity

JEL Classification: Q18, Q16, Q10, H50, H54

Suggested Citation

Yu, Bingxin and Chen, Kevin and Zhang, Yumei and Zhang, Haisen, Evolving Public Expenditure in Chinese Agriculture: Definition, Pattern, Composition, and Mechanism (December 31, 2014). IFPRI Discussion Paper 01407, Available at SSRN: https://ssrn.com/abstract=2545494

Bingxin Yu (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Kevin Chen

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Yumei Zhang

Agricultural Information Institute of Chinese Academy of Agricultural Sciences ( email )

No 12 zhongguancun nadajie
Haidian district
Beijing, Beijing 100081
China

Haisen Zhang

University of International Business and Economics, Beijing ( email )

Beijing
China

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