Abstract

An empirical study on the relationship among water conservancy investment, construction of water conservancy facilities and agricultural development

Author(s): Yuan Huaiyu, Wu Shangyu

This paper studies the relationship among water conservancy investment, construction of water conservancy facilities and agricultural development through unit root test, cointegration test, Granger causality test and multivariate regression analysis. It demonstrates that there exist long-term co-integration relations between water conservancy investment and agricultural development, and between the construction of water conservancy facilities and agricultural development. It is proven that the investment is not the granger cause of the development but the construction is the Granger cause of the development. The result of regression analysis based on the agricultural growth mode suggests that increases in the effective irrigation area and soil erosion control area can notably promote agricultural development while water logging control area has no such an effect on agriculture.


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