Study On The Contribution Of The Financial Expenditure To Co-ordinating The Development Of Urban And Rural Areas In Hebei Province

Urban and rural development which is putted forward by the central government is an important part of the scientific concept of development. Since the reform and opening up, economic development in Hebei Province maintained a fast growth momentum, but the urban-rural gap has been growing. Coupled by the financial turmoil, a sharp decline in imports and exports in Hebei Province, People's reduction in income, consumption declined, private investment slowed down and insufficient effective demand. Research the relationship between expenditures at this time in Hebei Province and urban-rural development are conducive to our overall understanding of contribution the financial expenditure to the urban and rural development, to improve the effectiveness of various financial expenditures, to optimize the structure of financial expenditure, so that the configuration of the financial resources to achieve a reasonable .This article is in this context putted forward to trying to analyze the relationship between co-ordinate the development level of urban and rural areas in Hebei Province and local financial expenditure in Hebei Province from the empirical point of view , in order to provide a new attempt for analyzing the development of urban and rural Hebei Province. In this paper, taking advantage of the major theories of modern economics is the dynamic optimization theory, endogenous growth theory and public finance theory; the main research tool is the statistics and modern econometrics. On the basis of the absorption of the latest research results at home and abroad, I will be an empirical analysis relation between the local financial expenditure in Hebei Province and co-ordinate the development of the urban and rural areas in Hebei Province using OLS analysis, vector auto regression model and the impulse response function address the reform and opening up , in order to receive long-term impact of financial expenditure in Hebei Province to the development of the urban-rural in Hebei Province. The results show that the scale of the financial expenditure to the level of co-ordinating of the urban and rural in Hebei Province in promoting the comprehensive development effects is obvious; From the point of the results of the analysis of structure of financial expenditure, without considering its factors of co-ordinate the development level of urban and rural areas in Hebei Province, the contribution rate of capital expenditure is the largest, followed by cultural and educational subjects Wei expenses. Administrative expenses as compared with the previous two, the contribution to co-ordinate the development level of urban and rural areas in Hebei Province is smaller, while the contribution of agricultural spending is the smallest. Based on the reality of the size and structure of financial expenditure in Hebei Province, the Government must take effective financial expenditure policy to increase human capital, infrastructure, basic education, technology applications, agriculture, investment, and investment in the areas of research and development, promoting the level of urban and rural development in Hebei Province, so that the full enjoyment the outstanding achievements of economic development of the people of Hebei Province.