The Research On The Relationship Between Regional Fiscal Expenditure And Economic Growth

Economic growth has always been the most important goal of the macro-economic regulation and control, with the development of the New Economic Growth Theory, the influence of the government spending on economic growth has increasingly become a hot research in economic circles. As the basic macro-economic policies, expenditure has an important macro-economic regulation and control function, naturally, promote economic growth is the primary goal. Because of the different economic development stages and the different focus of fiscal expenditures of every regional, the scale and structure of regional fiscal expenditure will have different effects on economic growth. Therefore, the study of the relationship between the size and structure of regional fiscal expenditure and economic growth seems very necessary.The initial period of reform and open up, for the purpose of improving the speed of economic development, China has implemented the non-balanced gradient developmental strategy which took the eastern part as the center of gravity, This kind of developmental strategy has promoted China'economy rapid growth effectively, also caused the serious imbalance in regional economic growth, and along with the Chinese economy unceasing growth,the regional gap between the level of economic development is also continuing to expand. It should be said there are many reasons led to regional economic development disparity in China, such as regional natural resource endowment, capital, labor, industrial structure, industrial technology, import/export, local fiscal expenditure and management capacity, national industrial policies and the regional Development policies, are important factors in affecting the rate of regional economic growth. But regional fiscal expenditure is undoubtedly one of the most important and direct factors in influencing regional economic growth. Because regional fiscal expenditures not only can adjust the economic structure by configuring public funds, but also indirectly play a demonstration effect, in order to guide the rational flows of public resources.This article is based on the analysis of the theory about relationship between fiscal expenditure and economic growth, respectively analysis the status and changes trend of fiscal expenditure scale and fiscal expenditure structure about Chinese Eastern, central, western and northeastern, and set up the empirical model about the relationship between regional fiscal expenditure scale, structure and economic growth based on the Barrow public products model, respectively introduce the regional fiscal expenditure scale and fiscal expenditure structure data to the model to estimate, then on the basis of the empirical analysis results to analysis regional fiscal expenditure on China's eastern, central, western and northeastern how to effect the economic growth after all, How much of the effect degree? And regional fiscal expenditure of each constitutes part how to effect economic growth? Which expenditure projects play a positive role on regional economic growth? The growth of some expenditure projects which is not conducive to regional economic growth?Finally according to the final analysis results proposed the regional fiscal expenditure policies to adjust regional fiscal expenditure scale and optimize the structure of regional financial expenditure in order to promote regional economic balanced growth and maximize the effectiveness of regional fiscal expenditure.