Fiscal Policy And Employment

To solve the problem of Unemployment, inflation (or deflation), economic growth and the international balance of payments is the governments of the main macroeconomic policy goals. China as the most population of developing countries, the current employment situation and employment pressure is very severe, just rely on the power of market mechanism for solving the employment problem is not reality. When the market can't play the role, there will be need government intervention. As the main economic policy, Fiscal policy is one of the important policy tools to control unemployment. So research the relationship between fiscal policy and employment has the important theoretical and practical significance.Firstly, on the basis of comprehensive review of the relevant documents, establish a theoretical analysis framework of fiscal policy and employment relationship, as the theoretical basis of empirical research.Secondly, Based on the 1978-2008, the provincial data of China using panel unit root test, cointegration test and error correction model, analyzing the relationship of revenue and employment,Fiscal expenditure and employment,Fiscal deficit and employment. Comprehensive evaluation of China's fiscal policy effect on employment provided theoretical basis and empirical support for a reassessment of fiscal policy. Research results show that there is a long-term equilibrium co-integration relationship between the government revenues, the government consumer spending, the government productive expenses, fiscal deficit and employment respectively. China's financial income and employment exist significant negative correlation; the government productive expenses and employment exist significant positive correlation, the government consumer spending on employment is positive, but not through the significant test; Fiscal deficit and employment exists the significant negative correlation.Finally, according to the empirical results, put forward the corresponding policy implication, hoping that these countermeasures have good feasibility and operability and can provide reference for relevant departments.