Abstract:
Based on Granger causality tests of multivariable VAR model, influence of financial development to agricultural economic growth of China is investigated using sample datum from 1981 to 2009. The results indicate that the cause for the agriculture’s GDP Granger is not the agricultural loan, but the public financial support to agriculture and the agriculture investment. At the same time, the results of impulse response function and variance decomposition show that the average contribution rates of the public financial support and the agriculture investment to the agriculture’s GDP are 4% and 5%, respectively.