An Analysis Of The Influence Of Local Fiscal Expenditure On Regional Economic Growth

Economic growth is the premise and the base of the economic development and theimprovement of society to a nation or a region,therefore it has been the main research topicof economics for a long time. Economists always paid more attention on the long-run trendand the inner mechanism of the economic growth. By convergence hypothesis based on theneoclassical economic growth theories, the attracting anticipation to the long-run trend ofregional economic growth was put forward and the powerful explanation for economicdisparity that exists of district was given. On this ground,the issue of convergence ordivergence,the speed of convergence and the cause of convergence, became the hot topics ofregional economics study.Nowadays, the situation of the disparity of regional economy in our country goes worse.As the local government displaying macroeconomic regulation, its expenditure policies cansuppress the infinite expansion of the regional economic development disparity effectively,and achieve the fair of different regions and the optimized disposition of resources. Then, theproblem existing is that, with the regional disparity expansion, what the change about regionaleconomic growth is? With convergence to the regional economic growth, what influence thelocal fiscal expenditure policy can have?Based on this, this article tries to use the convergence theory to carry on the positiveexamination to the economic disparity questions of 30 provinces in China, and discusses theinfluence of the local fiscal expenditure and its correlation variable grows to the regionaleconomic convergence.This article consists of six parts:The first part is an introduction. Which briefly introduces the background and the basisof the selected topic, and also reviews the research tendency and progress analysis of ourcountry regional economic growth of domestic and foreign scholars correlation literature andso on, then proposes the point of further studies, and defines the main content which thearticle studies.The second part is the theoretical analysis of economic growth convergence. Itsummarizes the basic hypothesis, the related theory and the analysis model of economicgrowth.The third part is the economic analysis between the fiscal expenditure and economicgrowth, which mainly elaborates the fiscal expenditure theory and the influence of the fiscalexpenditure which grows to the regional economy.The fourth part is the positive analysis of the fiscal expenditure which grows to theregional economy. Regarding the positive examination of absolute convergence,conditionallyconvergence and club convergence of Chinese regional economic growth, it further analyzesthe influence mechanism of the local fiscal expenditure variables which grow to the regionaleconomy in this foundation.The fifth part is the conclusion and the policy enlightenment. According to the positiveanalysis result we can obtain the summary to concern some local fiscal policy choices, andexpect it may promote our country regional economy development harmoniously thoughimplementing these policies.The sixth part is concluding remark. Reconsidering the deficiency of the studies in thisarticle, it also points out the further direction to study.