Empirical Analysis On The Relationship Between Government Expenditure And Economic Growth

The development of the market economy cannot leave the government guidance. Parts of the2008credit crisis as ammunition economic crisis triggered the global recession, in2009. the European debt crisis for the global economy is one disaster after another, these to the economic development of our country has formed the enormous impact. In order to alleviate the influence of the impact, the Chinese government initiated the proactive fiscal policy and monetary policy, and on the unprecedented government investment and economic stimulus plan. The implementation of this policy ensures a steady growth of the economy.In order to achieve the sustainable development of economy target, we must change the existing mode of economic development. The empirical analysis of the long-term relationship between government spending and economic growth can be better for the choices to strength the fiscal policy, and help the government to carry out integrated control measures to promote economic growth mode, so there are good theory and the practical significances.Full text used two main research methods:one way is to use the error correction model to analyze the relationship between the country government spending and the economic growth; another is to use a panel data model to analyze the relationship between the local government spending and the economic growthPaper get the following basic conclusion:Frist, the economic construction spending and defense spending and economic growth is on the move in the opposite direction, to economic growth has inhibition, social culture and education spending and administrative expenses and economic growth is on the changes but on the economic growth has stimulative effect.Second, based on local government spending provincial panel data analysis results show that: in the eastern areas, capital expenditure to play a role in promoting economic growth more significant, in the central area, consumer spending to promote economic growth play a bigger role; in the western region, the first and the third stage, among the three expenditure, consumer spending influences economic growth is the largest, the second stage, phase metastatic spending has the biggest influence on economic growth.