Research On The Relation Between Fiscal Revenue & Expenditure And Economic Growth

The relation between public finance and economic growth is one of the key points catching common concerns and contents of theory circle and practice circle. And the relationship between fiscal revenue & expenditure and economic growth is one of the important research directions. The former researches of exports from mainland focused on Taiwan's economy and trade. With the expansion of cross-straits'economic intercommunication, the upgrade of the cooperative levels, and the improvement of colaborative components, broadening the research spectrum of Taiwan'economy and highlighting the relation between fiscal revenue & expenditure and economic growth are of momentous pratical significance and far-reaching reference magnitude.Based on the overview and synthetical analysis of the relative research achievments, this paper, firstly, introduces the related finance and economic growth theories grounded on the west economy theory briefly. The common analysis methods composed mainly of the advanced statistical technologies and econometric methods are also presented. Secondly, this paper summerizes Taiwan's financial and economic movement characteristics in the past half century through related founamental economic theories and common technologies. It also analyizes the overall relationship as well as structural relationship between finance revenue & expenditure and economic growth, and comes to the resemblances or differences in cross-straits'fiscal revenue & expenditure and economic growth relationships. Finally, on the basis of the above anlysis, it reaches the core conclusions. Relative political suggestions and further research directions are also proposed. The main structure is presented as follows:Chapter one, which is the part of introduction, explains the research backgrouds, purposes, topics, methods and the new points. Meanwhile, this parts briefly gives the commentaries on the current research on the basis of clearing the associated concepts. Chapter two illustrates the basic theoris about fiscal revenue & expenditure and economic growth, essentially reviewing the fiscal theories by virtue of western economic theories.Chapter three describes the common methods when analyzing the association between fiscal revenue & expenditure and economic growth. The central attention lies in decomposition technology, regression and time series analysis, as well as cointegration method.In chapter four, Taiwan financial and economic movement characteristics are depicted. By decomposition technology, this part completely recapitulates Taiwan's financial and economic movement features over the past half century.Chapter five is about the overall relationship between Taiwan revenue & expenditure and economic growth. With statistical and econometric approaches, it examines the overall links of fiscal revenue & expenditure and economic growth.Chapter six has to do with Taiwan's strutural relationship of fiscal revenue & expenditure and economic growth, via statistical and econometric approaches as wellIn chapter seven, the comparative analysis of cross-straits'is provided. It comes to the resemblances or differences in cross-straits'fiscal revenue & expenditure and economic growth relationships by first studying this link in Mainlandand then comparing with that in Taiwan.Finally in chapter eight, we get the conclusions, suggestions and prospects. From the above examinations, it reaches the core conclusions. Relative political suggestions and further research directions are also proposed.In comparing cross-straits'fiscal revenue & expenditure and economic grwoth relationship, some inspirations for Mainland are lying on the following respests:a. In the respect of finance and economy movement charateristics, Mainland's fiscal revenue & expenditure shows absence of synchronism with GDP, and this phenomenon is reasonable. It demonstrates that finance should keep the relative independence and the leading role.b. In revenue and expenditure structure aspect, Mainland can learn from Taiwan in the terms of increasing social welfare expenditure and raising the level of welfare when design the fisical expenditure struture. So there still is more room for Mainland to improve the fiscal expenditure structure.c. In the part of major fisical and economic indicators, Mainland should absorb from Taiwan's experiences in 80s last century, that is, Mainland should strengthen the stability of the economic indicators as it keeps the synchronism of fisical indicators.d. As for fisical revenue and economic overall correlation, Mainland should keep both fisical revenue and expenditure from increasing too fast when maintains the normal economic growth.e. For the structual relationship between fisical revenue and economic growth, Mainland should promotes expenditure in education, science and culture to boost faster, while controls the growth rate of the unproductive expenditure (e.g. adminstrative costs) as well as the growth rate of taxation revenue.