The Research On The Correlation Between Public Expenditure And Economic Growth Of Chongqing Based On The Framework Of Endogenous Economic Growth Model

Chongqing is China's fourth municipality.With the "lap wings" new pattern of regional development and implementation of the concept of co-ordinating the development of urban, Chongqing becomes one of the fastest-growing region in the western region and.Economic growth is the region one of the most important criterion,so long-term and stable economic development of a healthy and stable development of the city has a very important significance.However,Impact on economic growth,the financial expenditure policy changes is the important factor.In this paper,adding the financial expenditure and economic growth to the framework of endogenous growth to analyze,I do the quantitative analysis on financial expenditures in Chongqing and the correlation between economic growth,making use of the Chongqing Municipal expenditures, education expenditures,research and development expenditures as well as administrative the management costs of the years 1997-2006 time-series data,from the human capital,technological progress,production of the three aspects of public capital.And the measurement results show that the production of the municipal expenditures,education expenditures,research and development expenditures in Chongqing have a positive correlation with economic growth,on the contrary,administrative costs and economic growth is negatively correlated with education expenditure.At the same time,that education expenditure and R & D expenditure impact on economic of Chongqing is obvious.Then,I also analyze the efficient use of financial expenditure of funds.The resault is that extra-budgetary funds continue to played a catalytic role on Chongqing economic growth,but the extra-budgetary funds should be properly controlled.In this paper,based on the measurement and analysis,Chongqing Municipality should draw up the promotion human capital formation and technological progress and public capital formation expenditure policy,under the promotion economic growth of Chongqing and the development of the whole idea of fiscal expenditure policy,while administrative and the over expenditure of extrabudgetary funds should be controlled effectively.