Study On The Relationship Of Financial Expenditure And Economic Growth In Hebei Province

Scientific and reasonable financial expenditure structure is the need of realizing the government functions, and it is also the basic premise to improve the efficiency of financial expenditure. As the financial reform of China, the financial system has shifted from the economic development to the public service in Hebei Province, but there are still many unreasonable places in the financial expenditure structure. It is the important theoretical and practical issues to definite the scope of financial expenditure and optimize the financial expenditure structure scientifically.The main purpose of this article is to demonstrate the effects of the financial expenditure to the economic growth in Hebei Province. In view of this topic's characteristic, the article has used the standard analysis and the real diagnosis analysis, the qualitative analysis and the quantitative analysis.Firstly, carry on the summary of present research in the relationship of expenditure and economic growth from the angles of overseas and the domestic, and briefly elaborate the characteristic and main content of various theories, aim to understand their views and stand objectively.Secondly, use the large amounts of data, charts and qualitative analysis, analyzes the basic situation of the financial expenditure in Hebei Province, then find out the problems of expenditure structure in Hebei Province.Thirdly, use the Cobb-Douglas production function to build the economic growth model containing expenditure, then use the quantitative analysis, to analysis the effects of expenditure to the economic growth and the reasons of expenditure imbalance in Hebei Province.Finally, from the functional and natural expenditure structure, bring up countermeasures of optimizing the expenditure structure in Hebei Province.