The Research On Welfare Financial Expenditure's Equity And Its Effect On Economic Growth In China

As the important contents in the field of re-distribution, the important functions of public welfare is in a fair-oriented, the Government corrects and improves of personal income distribution inequality while the provision of public goods, in the form of tax revenue and public welfare financial expenditure, and regulates distribution of the gap. Generalized social welfare is all the social life measures which is in order to improve people's material, cultural, health and education, and organized and funded by the government, Including the government's cultural, educational, medical and health services, various service utilities and the welfare financial subsidies which are all organized by the Government and have the nature of public goods and quasi-public goods. The level of different areas'public welfare is decided by the state's fiscal system and fiscal expenditure structure, which forms the gap of the public welfare distribution between different regions.Based on defining the concept of the welfare financial expenditure, the paper discusses the composition of welfare financial expenditure and raises the connotation of welfare financial expenditure. The paper structures system of quantitative indicators, which reflects the distribution of welfare financial expenditure based on the system description and inventory & traffic data analysis current status of the distribution of welfare financial expenditure. The evaluation method of personal income distribution gap is introduced into the evaluation of welfare financial expenditure gap. The Gini coefficient is used primarily as an indicator of fair quantitative analysis, and to construct the determination indicators of the welfare expenditure distribution gap. In this paper, using the financial expenditure data of sub-regions in 1995-2007, and using the Gini coefficient method measured the gap between China's provinces and municipalities in welfare expenditure. Through the decomposition of the Gini coefficients and calculating its area constitutes, we found that the differences of welfare expenditures between eastern, central and western were the main performance of the total differences. By setting up VAR model and impulse response function, we compared the regions'differences of expenditure Gini coefficient on economic growth effects. The results showed that the relationships between economic growth and the differences of public welfare on eastern and central provinces were alternating positive and negative, but it had stabilized negative in the end; in western region, the relationship between economic growth and the differences of public welfare were negative and stable for a long term.