The Research Of Fiscal Expenditure Policy To Promote Employment

Employment not only related to livelihood issues, but also is animportant bridge connecting economic growth and social development.International and domestic economic situation has undergone great changesince the end of2008, the international financial crisis. Under the guidanceof China’s macro-control policy enforced by government departments,China’s economic has been maintained stable and rapid growth rate ofGDP growth is basically maintained at more than8%, however,accompanied with the rapid economic development is China’s seriousproblem of employment.‘High Growth, Low Employments’ as aphenomenon can not be ignored in our economy. Fiscal expenditure policyas one of the effective tools for national macro-control played an importantrole in regulating the economy and improving people’s livelihood, rationaluse of fiscal spending policy to change the country’s employment situationis of great significant.In this paper, set our current sever employment as background, Thefirst chapter starts from the theoretical and practical significance toillustrate the significance and necessity of research on fiscal expenditurepolicy to promote employment, and literature review of the employmenteffects of fiscal spending from foreign and domestic. The second chapter isthe theoretical research, and sort out the first major Western schools of employment theory, describing the traditional theory of employment.Followed by the basic theory of fiscal expenditure, classified the effects offiscal spending and the functions of the financial expenditure. In the thirdchapter analyzed of our nation’s unemployment and the employmentelasticity. The analysis is mainly from the perspective of the employmentelasticity. Give an evaluation of our nation’s whole employment. Thefourth chapter use of econometric of least squares against the relationshipbetween the three kinds of flexibility and the amount of employment test,reached a conclusion of low effect of the current fiscal expenditure policyto promote employment conclusions. Then find the reason why the currentfiscal expenditure policies have a low employment effect. From the threeaspects of fiscal policy objectives, the fiscal policy area of investment andfinancial employment expenses. At last provides suggestions for improvingChina’s fiscal expenditure policy to promote employment.