Empirical Study On The Impact Of Fiscal Expenditure On Economic Growth In China

Fiscal policy is one of the government macro-control means, and economic growth is one of the four major obj ecti ves of the government’s macro-control. Government functions effecti vel y playi ng the role and development of society and economy arecl osel y rd ated to the fiscal expenditure policy. Adjustment of the scale of fiscal expenditure and the fiscal expenditure structure will affect the total social demand and supply, and then influence the economic growth. Different part of fiscal expenditure has different ways to influence the economy of the three i ndustri es.Adopted a qualitative and quantitative methods, this thesis analyzes the impact of Chi na’s fiscal expendi ture on economi c growth i n a comprehensi ve and systematic way. Fi rstl y, thi s thesi s gives a bri ef i ntroducti on to the background and si gni ficance, both domesti c and foreign issues, the structure, exploring and trying and weakness. Secondly, it analyzes the connotation of financial expenditure, the scale of fiscal expenditure, the structure of financial expenditure and fiscal spending and economic growth theory. Then it analyzes the correlation between the total financial expendi ture and economic growth with the VAR model and impulse response analysis. Next, it analyzes the trend of different parts of China’s fiscal expendi ture and the correlation of economic growth of the three major industries with the VAR model, impulse response and vari ance decompositi on, i n order to obtai n the extent and timedel ay of the variables contained by the models. At last, it summarizes and analyzes the relationship between China’s fiscal expenditure and economi c growth, and puts forward appropri ate pol i cy recommendations.