The Definition Of Chinese Local Public Expenditure Framework: An Analysis Of Economic Growth

With the constant improvement of China's socialist market economic system and the formation of the framework of public finance, the reform of local fiscal decentralization has been on the agenda. Especially in the case of the extremely unsatisfactory framework of local public expenditure and management system, defining the framework of local public expenditure at all levels appears to be particularly important. Now this dissertation analyses the framework of local public expenditure from the perspective of economic growth. First, the text takes empirical study on local public expenditure and economic growth at all levels below the provincial government, and shows that the scale of it could promote economic growth effectively. Second, through the empirical study on the vertical structure of public expenditure and economic growth, the results show that local public expenditure structure should be improved. The governments can take advantage of the various public expenditure output flexibility ratios to improve it and make it optimization. Finally, this text puts forward some suggestions and views in defining the local public expenditure framework.There are three parts in the main body of the dissertation. The first part analyses the actuality and problems of the local public expenditure at all levels from the perspective of their scale and structure, and analyses the reasons for these problems thoroughly. The second part takes Fujian province as an example, and uses the empirical study method to analyze the local public expenditure effects on local economy. And the last part of the text redefines the responsibilities of local governments at all levels according to the theoretical and empirical analysis above, improves the public expenditure framework and makes it optimization.According to the output flexibility of local public expenditures scale and the categories of spending, the paper uses the empirical study method to divide the local public expenditure framework at all levels one by one from the perspective of economic growth. And then it defines the scope of public spending and responsibil -ityyes of local governments at all levels, such as provinces, municipalities and county. This is the extension of the Financial Decentralization Theory. And it also is the main innovation of this thesis.