An Analysis On The Influence Of Financial Expenditure On Economic Growth Of Hebei

Neo-economic growth theory shows that financial expenditure can promote economicgrowth. Basing on the framework of neo-economic growth theory, A theoretical and empiricalanalysis of the influence on financial expenditure and economic growth of Hebei provincesince 1978 to 2003 is discussed in this paper. An empirical analysis is made on thecontribution of budget and total financial expenditure to economic growth from scale andstructure. The results indicate that budget expenditure has positive influence, but consideredthe beyond expenditure together, the influence is not so significant. When considered thestructure of expenditure, the results show that the part of expenditure serving for economiccan promote economic growth, but the part serving for society and administration are negativeand not significant. According to the theoretical and empirical analysis above, the reasons areanalyzed and some suggestions of financial expenditure are put forward.