The Effect Of Transportation Fiscal Expenditure Scale On The Economic Performance Of Transportation Industry In China

As one of the basic service departments for the national economic development,transportation industry plays an important role to create the good environment for the development of the regional economy and to guarantee the sustainable development of the entire economic system;while fiscal expenditure is the most principal source to the transportation industry development.From a regional perspective,this paper conducts an theoretical analysis and empirical study to examine the mechanism and the dynamic effect of fiscal expenditure scale on the economic performance of the transportation industry.This paper proposes its main subjects by firstly defining the concepts of fiscal expenditure scale,economic performance,economic output scale and economic output efficiency of the transportation industry.Constructing an analytical framework about the dynamic impact of expenditure on the economic output performance of transportation industry.Then the mechanisms of fiscal expenditure on economic output scale and efficiency of the transportation industry are reviewed,and the threshold effects of fiscal expenditure on economic output are analyzed in this paper;which provides the theoretical foundation and necessary basis for the empirical study.From the perspective of the economic output scale of the transportation industry with its overall results,this paper verifies the dynamic effect of fiscal expenditure scale on its economic performance based on the former studies of theories.The fluctuating effects of fiscal expenditure scale on economic performance in a short and long term are examined through a PECM(panel error correcting model)and the dynamic impacts and the developing processes of fiscal expenditure and non-fiscal expenditure on economic output scale of the transportation industry are also deeply analyzed by proposing the panel VAR model and using the panel impulse response function from a regional angle.From the perspective of the economic output efficiency of the transportation industry with its process results,this paper verifies the dynamic effect of fiscal expenditure scale on its economic performance based on the former studies of theories.The direct and indirect effects of fiscal expenditure on economic output efficiency of the transportation industry are firstly discussed and then the evaluation system is proposed to assess the economic output efficiency of the transportation industry with DEA,Super Efficiency DEA and Malmquist production efficiency index.Finally,this paper builds up the dynamic affecting model of fiscal expenditure and non-fiscal expenditure to the economic output efficiency of the transportation industry and empirically examines the dynamic impacts of fiscal expenditure and non-fiscal expenditure on economic output efficiency of the transportation industry from nationwide,within the eastern,the middle and the western area in China respectively.The main aim of this paper is to deeply dig into the inherent law of the effects of the fiscal expenditure on the economic performance,which can help to identify whether there is another research perspective of structural mutation to examine the structural dynamic effects of fiscal expenditure to the economic output performance of the transportation industry.By proposing a bi-threshold effect model of fiscal expenditure on both economic output scale and economic efficiency of the transportation industry,this paper discusses the threshold effect of fiscal expenditure on the economic performance of the transportation industry with the variables of the growth of regional economy,fiscal expenditure and non-fiscal expenditure and in the way of firstly verifying the variables,then evaluating the values of the variables and lastly estimating the bi-threshold model.Breaking through the traditional study perspective,this paper progressively and deeply investigates the effects of fiscal expenditure on the economic performance of the transportation industry with both overall and process results and the inherent law of structural change.The paper makes both theoretical and practical contributions by enriching the theoretical framework of fiscal policy effects of the transportation industry,providing suggestions to policy decision makers and transportation department for their reference,and helping to make fast progress for the transportation industry.