The Influence Analysis Of Local Public Expenditure On Technical Efficiency

All along, the research between public expenditure and economic growth get much attention from the researchers. However, to date, studies of public expenditure and economic growth are limited to the relationship between them, such as the causation and the cointegration relationship, and the literature about the ratio of public expenditure or its components in GDP affecting the quality of economic growth is less. With the development of the theory of public expenditure,people realize that the research about the influence of the ratio of public expenditure and its components in GDP for the technical efficiency has great practical significance. However, the study is limited to a single method for the public expenditure share of GDP and its components affect the quality of economic growth has not been studied in depth. Fortunately, with the development of recent econometric technique and productivity measurement theory, it provided technical support for our research.Therefore, this article first reviewed the history and development of the theory of productivity , technical efficiency measurement and model techniques, and analysis the profile of public expenditure since China's reform and opening up; Next, with the help of time variant stochastic frontier production function model, the ratio of public expenditure and its components to GDP as model factors, 31 provinces and cities in China as study samples, inspected the influence of the ratio of public expenditure and its components to GDP the technical efficiency, and based on the geographical differences of economic development in the area, and further analysis the differences of the technical efficiency in the eastern, central and western regions, In addition to further understanding among our technical efficiency of geographical differences, based on the stochastic frontier function model,the TFP is decomposed to the rate of technical efficiency change, technical progress, the resource allocative efficiency and scale economic in four parts, from the national level and the eastern, central and western parts of the two three-wide analysis of changes in the rate of productivity elements source;Finally, In earlier empirical analysis between actual results and our geographical situation, this paper advised to be in public expenditures and revenues improve the efficiency.