Abstract:

The aim was to study the effects of investment of Taiwan on the agricultural development of Fujian. With the panel data of 1991 to 2009 Fujian agricultural gross output value and the real investment of Taiwan businessmen in Fujian agriculture and so on, a quantitative analysis on the efficiency of using the agricultural investment of Taiwan businessmen in Fujian agriculture was done by using the co-integration test, error correction models and Granger causality test. It was certified by the research that there is a co-integration relationship in the long term equilibrium between the agricultural investment of Taiwan businessmen and the growth of Fujian agricultural economy. In the short term the agricultural investment of Taiwan businessmen could cause the change of Fujian agricultural gross output value in the same direction. Fujian agricultural gross output value would change at 0.674183% when the agricultural investment of Taiwan businessmen at 1%. When the short term fluctuation deviated from the long term equilibrium, non equilibrium state would be taken to the equilibrium state at the adjustment of -0.332285, which explains that there was a dynamic mode between the agricultural investment of Taiwan businessmen and the growth of Fujian agricultural economy. So the agricultural investment of Taiwan businessmen made a obvious improvement to the growth of Fujian agricultural economy, but the growth of Fujian agricultural economy didn’t affect the agricultural investment of Taiwan businessmen.