Research On The Relationship Between Government Expenditure And Resident Consumption In Guangdong

The relationship between government public expenditure and household consumption has always been a hot issue in the theory realm, especially in China where household consumption has been keeping down drifting. The lagging domestic demand has to some extent delivered some negative effect on the macroeconomic operation and economic growth. In order to get over this problem, the policy of financial expenditure has been made some adjustment. How to stimulate domestic demand especially consumption has been the subject matter of economy, even in Guangdong which is economically developed area. Under this circumstances, the paper has studied the relationship between government public expenditure and household consumption in Guangdong. The whole paper include five chapter. The first chapter shows the background of research and the relative research that has been done, then introduce the framework and method of research. The second chapter analyzes the relation of government expenditure and resident consumption theoretically. The current situation of government expenditure and resident consumption in Guangdong is described in chapter three. The fourth chapter the paper uses Empirical Analysis Methodto inquire into that how do the government expenditure as well as the government expenditure structure influence the resident consumption. The empirical analysis shows that government expenditure brings out significant crowding-in effects. At last chapter ,the paper proposes some policy suggestion on government expenditure policy in Guangdong.