Empirical Analysis On The Influence Of Fiscal Expenditure Upon Economic Growth Of GuangDong Province

Ever since Keynesian Revolution, the effect on economic growth of fiscal expenditure has been one of the important subjects of academic research, and most scholars have provoced that fiscal expenditure do really affect economy from the aspects of both theoretical and empirical study. GuangDong province has developed very fast since China's Reform and Opening Up, and the fiscal expenditure has growth quickly at the same time, during this period, how do the fiscal expenditure affect the economic growth, industrial structure, demand structure, regional economy and so on will become the key problem of this paper.Theoretical analysis and empirical analysis will be adopted in this paper to text the influence of fiscal expenditure on economy of GuangDong province. In oder to explain the the theory and policy on the effect of fiscal expenditure, Demand Constaints Theory and Endogenous Growth Theory are cited in the theoretical part. In the empirical part, the changes of fiscal policies and fiscal systems are combined to analyse the changes of both fiscal expenditures and economic conditions from the perspective of history first. Second, model OLS and model VAR are used to examine the influence of fiscal expenditure on economic growth, industrial structure, demand structure, regional economy and so on. Suggestions are proposed on the basis of the real situations of economy and fiscal expenditure of GuangDong province in the end.