Analysis of the Dynamic Relationship among Financial Fund for Agriculture, Agricultural Output Value and Farmers' income

By using the methods of co-integration, impulse response function and variance decomposition, I conduct the empirical research on the dynamic relationship among China's financial fund for agriculture, agricultural output value, and farmers' income from the year 1978 to the year 2009. The results indicate that me government’s financial fund for agriculture plays the significant role in promoting agricultural output Value and farmers' income in the long run, but this role of promoting is not prominent in the short run; in the mean time, agricultural output value plays insignificant role in promoting farmers' income and the governments financial fund for agriculture; farmers' income plays the significant role in promoting agricultural output value and the governments financial fund for agriculture.