Abstract: By using 1978—2010 annual economic data of Liaoning Province， this paper tracks the dynamic responses of agricultural fiscal expenditure and the added value of the primary industry with the VAR model and impulse response function， and confirms the leading and lagging relationships in time between the two variables through the Granger causality test. The findings indicate that there is a stable equilibrium relationship between them in the long run. Furthermore， the effect of agricultural fiscal expenditure on the added value of the primary industry is always positive and gradually increases with time. Meanwhile， the positive impact of the added value of the primary industry produces a strong cumulative effect to agricultural fiscal expenditure. Based on the Granger test， there exists only oneway causal relationship between the two variables; that is， agricultural fiscal expenditure only serves as the Granger cause of the added value of the primary industry in the short run.

Key words: agricultural fiscal expenditure, added value of the primary industry, VAR model, impulse response function, Granger causality test