With the reform in fiscal system, local fiscal expenditure has an increasing effect on local economic growth. Positive analysis on local fiscal expenditure structures and local economic growth is helpful to understand the impact of local fiscal expenditure on the economic growth. The purpose of the article is to research the impact of local fiscal expenditure on the economic growth. The article analyses the relationship between Chinese local fiscal expenditure structures and local economic growth from three aspects: Analyzes the situation of local fiscal expenditure structures and local economic growth of different regions; Develops an analytical framework which links the composition of fiscal expenditure with the economic growth, and we can find the composition of local fiscal expenditure has important effect on economic growth; Empirically analyzes the relationship between Chinese local fiscal expenditure structures and local economic growth by Panel Data, and the research result indicates that the composition of Chinese local fiscal expenditure is not rational, which restricts the effect of local fiscal expenditure, and local fiscal expenditure structures of different regions have different economic growth effects. Finally, through positive research, the article gives some policy suggestions. |