The Empirical Study On The Relationship Between Financial Expenditure Structure And Economic Growth

In this article on the premise of the theorical analysis of related relations between financial expenditure structure and economic growth, the author selects an array of data on time during 1978 to 1999 in our country to make examplicative study on the related relations between the structures of financial expenditures and economic growth in our country by employing static and dynamic growth production functional model.At the some time, the author makes a comparative study on Chinese financial expenditure with that of other countries and reaches a solution on the problem of Chinese financial expenditure's structure. The concrete conclusions are as follows:l.The problem on Chinese financial expenditure's structure lies mainly in the structure itself, which was not established reasonably according to the public financial system.The problem is shown in the following aspects.(l)In the structure of financial of functional financial expenditures, the scope of economic construct expenditures is overlarged and penetrates into the area of marketing competition; expenditure on culture and education is not enough and necessary investment is scant to improve scientific technology and human resources.Administrative expenditure swells and results in the consumption of too much productive fund.What is more, social security is not sound enough.(2)In the expenditures structure of financial nature ,the running institute on buying expenditures is not open enough and capital has been wasted seriously, models on diversion expenditures are out-dated and cause the unbalance on regional development.(3) On the expenditures structure of financial budget classes, bondage of decentralization is obscure and the financial and business authority also not divided clearly.2.suggestions on the improvement of Chinese financial expenditures structure:(l)The government should improve the financial structures according to public financial institute and the requirement of improving economic growth.(2) In the functional financial structure, expenditures of social culture and education and social security should be increased, the direction on economic construction should be diversed to make up the disadvantage ofindividual investment, namely to invest on the area of heavy market, simplify the government structure and decrease expenditure on administration.(3) In the structure of financial expenditure's nature, government should increase purchase expenditures and the operative model should be more open. For example, to quota system for exchequer concentrative payment, government purchase and quota system for use of labor; to decrease and regulate the types of diversion expenditure accordingly such as to decrease expenditure on tax repayment to employ open and direct compensation as a main method to gradually get rid of carvical way be adopting factor way.(4) In the expenditure structure of financial budget grade ,the decentralization controlling should be perfected.Authority on financial and business should be more reasonably divided into promote more vigorous economic development of regional government.