Study On Productivity Improvement Effects Of Chinese Local Government Technology And Education Expenditures

It is essential that government properly influences the economic system by the policies of government expenditures to reach the optimal Pareto conditions because there are some problems such as the imperfect market, the unsymmetrical information and the externality. According to the reality of the world economic development, with the development of economy and the increase of the complex of social organization, the proportion of government expenditures in GDP tends to increase with the economic development. It means that the influence of government on the economic system will strengthen. So, the effects of government expenditures on economy are one of the most important contents in the field of economy.Although most theoretical and empirical studies have shown that government technology and education expenditures exert very important positive effects on economic growth, there is no unanimous understanding about the mechanism of government technology and education expenditures on economic growth. The main objective is that based my study on the practice of China's reform and open, by using the recent study results and combining the theoretical analysis with the empirical study, the mechanisms of productivity improvement of government technology and education expenditures on economic growth have been revealed in detail, and some practical policies and suggestion have been raised to optimize the stuctures of government technology and education expenditures.The main contents include three sections. Firstly, based on the endogenous economic growth theory and the recent studies, the theoretical model has been established to analyze in details the mechanims of productivity improvement of government technology and education expenditures, that is, government technology and education expenditures improve the single factor productivity such as capital and labor and the total factors productivity in theoretical sense. It is some theoretical significace. Secondly, as the base of the theoretical analysis, the productivity improvement mechanisms and effects of government technology and education expenditures have been empirically studied in details by using the stochastic effects model based on provincial panel data, the reasons of the difference of regional economic growth have been analyzed from the regional difference of the effects of productivity improvement of government technology and education expenditures. Finally, based on the theoretical analysis and empirical results, the policies and suggestion have been proposed to adjust and optimize the size and stucture of government technology and education expenditures.The empirical results show thatâ‘ The productivity improvement effects of the government technology expenditures and the government technology expenditures in the different items have been empirically studied. The results demonstrate that the lagged productivity improvement effects are more evident, and with the prologation of lagged periods, the effects of productivity improvement tend to be larger, the productivity improvement effects of government technology expenditure in total and different items are significantly different in different regions. Generally, in the eastern region the government technology expenditures could improve significantly the total factors productivity, in the central region and the western region government technology expenditures reduce the total factors productivity possibly, and in three regions the government technology expenditures improve weakly the capital productivity and have no positive effects on the labour productivity. Especially, the effects of productivity improvement of the government expenditures on technological renovation and transformation are relatively small. Therefore, as for three regions, the size of government technology expenditures should be enlarged, and the government expenditures on technological renovation and transformation should be reduced by big margin and the other two items should be raised. Detailly, in the eastern region government technology expenditures should be put emphasis on the expansion of government technology expenditures on scientific operating expenses, and in the western region the government technology expenditures should be place emphasis on expansion on science three items expenses.â‘¡The productivity improvement effects of the government expenditure on education in total and different academic levels have been empirically studied. The results are that generally in all three regions the government education expenditures could significantly improve the total factors productivity, and with the prolongation of lagged periods, the effects of productivity improvement of government education expenditures tend to be larger, and the higher the academic level, the larger the effects of productivity improvement of government education expenditures, and the effects of productivity improvement of government education expenditures on the same academic level are gradually reduced from the eastern to the western, but have no evident effects on the single factor productivity such as capital and labor. Therefore, the government expenditures on the different levels of education could accelerate the accumulation of human resources to drive technological progress.Above all, the productivity improvement mechanisms and effects of government expenditures are various in different regions, but there exists the lagged effects of the productivity improvement. Therefore, the emphasis of government expenditures is various in different regions, but the government in all three regions should overcome nearsighted tendency to totally exert the long-term productivity improvement of government expenditures.