Research On The Relationship Between The Structure Of Local Fiscal Expenditure And Economic Growth

Economic growth is one of the most important goals of fiscal policy. In order to promote the continual growth of economic, government can adopt the prosperity of gross fiscal policy, but more important is to keep the correctly and reasonable of micro-fiscal expenditure policy. Different fiscal expenditure policy and fiscal expenditure structure policy have different economic effects. Since the reform and opening up, there is rapid economic development happened in Guangdong province. Guangdong also keeps the leading position both in GDP and financial revenue. During the process of development, what the local fiscal expenditure structure had impacted on Guangdong economic growth? Which elements of local fiscal expenditure have positive effect on economic growth? And which has negative effect? How to optimize the existing structure of fiscal expenditure in order to promote Guangdong economic growth better? All of these problems will be tried to answer and resolve in this paper.Standardized analysis and empirical analysis would be adopted in this paper. From the first to third chapter, we use theoretical analysis to research the related relations between fiscal expenditure structure and economic growth. In the third chapter, we not only deeply analysis the real Chinese fiscal expenditure structure, but also do comparatively analysis the fiscal expenditure structure between Guangdong and some eastern developed provinces. In the fourth chapter, we adopt empirical analysis methods and build the relative econometric model, use Eviews statistical software to do regression analysis between the fiscal expenditure structure and local economic growths, data originate from 1985s to 2006s of Guangdong province, find out the different fiscal expenditures impact on economic growth. Then try to do economic analysis of the statistical result. The fifth chapter is about conclusion, and finally gives some policy suggestions about optimizing the structure of Guangdong fiscal expenditure.