Research On The Relationship Between Fiscal Expenditure Structure And Economic Growth In Jiangsu Province

Economic growth is the premise and the base of the economic development and the improvement of society to a nation or a region. Fiscal expenditure plays a very important role in the economic growth as main of the macro-economic policy.Since the end of the 19th century, Wagner and other well-known economist have began to research the relationship between fiscal expenditure and economic growth.With the development of market economy system,and the establishment of public finance framework,China's fiscal reform has entered into a new stage of putting fiscal expenditure management reform as the focus.Optimizing fiscal expenditure structure and improving the effects of different types of expenditure on economic growth have become important and urgent tasks for fiscal management system reform.Therefore,it's of theoretical and empirical interest to research economic growth of Jiangsu Province from the perspective of fiscal expenditure structure.This research is directed by the theory of Statistics,Calculating Economics and Fiscal Expenditure,and is base on the collection and study of a great deal of domestic and international information. Combining theory and empirical analysis,the thesis systematically studies the relationship between fiscal expenditure structure and economic growth of Jiangsu Province.Firstly,this thesis briefly introduces the economic growth theory,especially the endogenous economic growth theory.At the same time,explains the common developing rules of fiscal expenditure structure,and the effects of different types of fiscal expenditure on economic growth.Then constructs the theoretical model of fiscal expenditure structure and economic growth. Secondly,using the relevant data,gives an all round analysis of the present situation of the fiscal expenditure structure of Jiangsu Province from the angle of scale,structure and regional differences.Moreover, points out the existing problems.Thirdly,with the Co-integration Test and the Granger Causality Test,confirms that fiscal expenditure is the reason of GDP growth.Then constructs the endogenous fiscal expenditure economic growth model on the basis of C-D production function,and using this model to reaserch the relationship between the scale of fiscal expenditure and economic growth.Furthermore,this thesis analyzes and compares the output elasticity of different types of fiscal expenditure by the method of Principal Components Regression.According to the reseach,fiscal expenditure has positive and statistically significant effect on economic growth,but the function is not the same in different types of the expenditure.In terms of the size of the output elasticity,the order is:public utility expenditure,public investment expenditure,public consumption expenditure,other expenditure and public service expenditure.According to the standard of optimal fiscal expenditure structure that derived from theoretical model, at the present time,there are also some unreasonable phenomenon existing in the fiscal expenditure structure of Jiangsu,it does not achieve the optimal state.On the basis of the empirical analysis,combining with the principles of reforming current fiscal expenditure structure and the actual situation of the economy development and fiscal expenditure structure of Jiangsu Province,this thesis proposes some policy suggestions aiming at optimizing Jiangsu's fiscal expenditure structure and promote the sustainable,swift and healthy development of economy,including the aspects of scale,structure and management system.