Study On The Relationship Between The Financial Expenditure And Economic Growth Of Heilongjiang Province

Financial expenditure is an important means of government to carry out macro-control, which has close relationship with economic growth, the relationship can affect the policy results. It became an important topic,adjusting the financial expenditure policy to promote upgrading the industrial structure and economic can stability and coordinated growthing. Especially at this time of Heilongjiang province stand at an important turning time, the economic is developping in a high speed and the original industrial structure need to optimization and resovle, the economic development of quality and benefits have to upgrade.This paper will apply the methods of theoretical analysis and empirical test, application financial expenditure and economic growth theory, to do the research on the relationship of financial expenditure and economic growth in Heilongjiang province.This paper systematically analyses financial capital expenditures scale, GDP development and changes features and trends, and describes the Heilongjiang financial expenditure growth rates, GDP growth rate, financial expenditure growth elasticity coefficient and marginal tendency by using the financial expenditure and Heilongjiang province GDP data, and further empirical test the contributions of financial expenditure scale on economic growth. We found out that the relationship between financial expenditure scale and GDP the elastic coefficient is 0.8581. The financial expenditure proportion of the GDP is much lower, the financial investment can't fulfil the reality needs,it's the important factors in that the development of economic in Heilongjiang province.By using the financial expenditure on scale and the three industries added value as the breach to analysis the data of the three industries changes in Heilongjiang province. Summarized the three of industrial structure changes trend and present situation. The next to using the Granger causality test to the relationship between the scale of financial expenditure and the added value by the three industries. The result is that the scale of financial expenditure was the granger reasones for the three industries.Find out the questions about economic aspects in Heilongjiang GDP level below than the normal, the growth speed is too slow. The old patterns that the heavy industry in the leading position is too difficult to break. The contribution value of the agricultural in the first industry declined, the third industry need to enhance the service level and strength the quality, at the last economic development is unbalance.Cointegration analysis and inspection these time series including each of the structure of financial expenditure projects and the economic growth data. The results were that the agricultural expenditure and educational expenditure can promote economic growth in long- term, by contrast the administrative spending inhibit to economic growth. The basic construction spending, social security and aid spending between economic increase with elastic coefficient are negative. In addition to the basic construction spending,the others constitute the granger reasons for economic growth. Found out that the more administrative spending the influence more seriousBased on the results of the study, put forward that expand the size of financial expenditurescale, adjust the expenditure focal point and optimize industrial structure, and so on. These financial expenditure policy suggestions intended to promote the Heilongjiang Province economic growth.