• International Area Studies Review
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• v.20 no.1
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• pp.237-250
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• 2016

This paper is to explore the relationship between the San-Nong expenditure and Quality of life of rural residents in China for the period of 1978-2013, using the unit root test, the Granger causality test, the cointegration test, VAR model, and VECM. The results of a study on the relationship between two variables show that an obvious mutually causal relationship exits between the financial expenditure for San-Nong(san) and gross output value of agriculture, forestry, animal husbandry and fishery(apro) in China. But the case of per capita ploor space of newly built residential buildings in rural area(rho) and per capita consumption expenditure of rural households(rli) show that the financial expenditure for San-Nong(san) press for improvement in the quality of life of rural residence, while rho and rli have not yet apparent effect to san. On the other hand, It showed that the financial expenditure for San-Nong(san) and the number of medical personnel(prdo) do not have a causal relationship with each other. Therefore, the government needs to find ways for a variety of San-Nong expenditure to improve the quality of life of rural residents.