Empirical Researches On The Influence Of Public Expenditure On The Economic Growth Of Liaoning Province

It is an important issue that public expenditure affects economy growth in the field of macroeconomic research, the fiscal policy development and reform in the future as well. China's economic system has changed from planned economy to market economy gradually since reform and opening up in 1978. The socialist market economy has experienced the process from development to constantly improve. But since there are defaults such as monopoly, public goods, external as well as asymmetric information in the market economy itself, government play an important role of the makers of macroeconomic policy. At present, the point is worth for sure that the ability of our government in macro-control has constantly matured, but there still exist inconsistencies impacting social harmony in some areas of developments, such as the gaps between urban and rural, and region are still increasing, employment, medical treatment, education and housing. There are so many problems that people most concerned urgently to be solved, the pressures of population, resource and environmental get more and more severe. These problems require us not to rely too much on market in the process of changing to a market economy, we must fully play the role of government's macro-control, meanwhile adjust the public expenditure reasonably, manage the economic and social development, improve economic performance comprehensively.In the process of government's macroeconomic control, fiscal policy is one of the most important measures, and public expenditure as the main lever of fiscal policy, its scale and structure have important effects on economic growth. After the reform of fiscal decentralization in our country, the local government has higher vies, so the research on local public expenditure is more important. In this article we introduce related theory of public expenditure and economic growth, then do empirical research on Liaoning Province from the scale and structure of public expenditure, and get the best public expenditure size of Liaoning Province, also achieve the role of every part of public expenditure on economic growth. Finally according to the exposed problems, we propose strategies to promote economic growth steadily.