Analysis Of Public Expenditure And Economy Growth Of Shandong Province

As the development of national economy and the carried out of the reform of the economy, local government adjusts and perfects public expenditure, and establish the public expenditure model which adapts socialist market system, and support the development of economy and the progress of social. As the important level of government to control the economy, the scale and structure of public expenditure can have the profound influence to the growth of economic. In order to find out the relation between the structure of local public expenditure and economic growth, and find the effect of the public expenditure of local government to the growth of economics, the article choose Shandong province as an sample, analysis the growth effect of economic of public expenditure, and give suggestions to Shandong province. At first, the paper analysis the current condition of public expenditure of Shandong province, and analysis the local expenditure of Shandong province the total of GDP of Shandong province and the speed of growth of GDP of Shandong province, and induce some character of expenditure: firstly, the average growth rate of Shandong local expenditure is higher than the average growth rate of GDP of Shandong province, secondly, the rate of local expenditure of Shandong province in GDP of Shandong province is growing smoothly. The effect of the total number and structure of local expenditure to GDP is an important problem of the paper, accord with the data of 1978-2006 of Shandong statistic yearbook, and use Var model in the base of unit root and co-integration test, and use Eviews5.0 software to analysis and research the effect of the public expenditure to the growth of economics. Administrative expenditure and expenditure of social medical and culture have positive promotion effect to the growth of economic. Economic construction expenditure and support agriculture expenditure have negative effect to the growth of economics. The influences of middle and long time of public expenditure are 0.0195 and 0.0152. The influences of middle and long time of economic construction expenditure are -0.0132 and -0.0106. The influences of middle and long time of economic construction expenditure are -0.0132 and -0.0106. The influences of middle and long time of culture education and medicine expenditure are 0.0064 and 0.0054. The influences of middle and long time of supporting agriculture expenditure are -0.0090 and -0.0073. The influences of middle and long time of supporting agriculture expenditure are 0.0289, 0.0254. The influences of middle and long time of administration expenditure are 0.0004 and 0.0004.