The Relationship Between The Fiscal Expenditure On Science And Technology And Economic Growth In Shandong Provinc

As the government’s works and their acheivement are more and more open andtransparent, the financial budget is more and more prefer to be drew up in performancebudgeting method. As they do in business accounting, we can also analyze the performanceof budget outlays with inputs and outputs in budget accounting.Since science and technology are the important power to promote our modernizationconstruction, the whole world are thinking highly of research and development. Especially,Shandong Province puts forward a new construction target of science and technologypromoting Shandong. What will the inputs of science and technology do for localeconomic development, nobody can get an exact answer. To solve this problem, this paperwill analyze the relationship between government investment in science and technologyand economic development in the accounting field.First, this paper will choose more representative target variables by comparing graycorrelation degree and Pearson’s correlation coefficient. After that this paper will performeUnit root stationarity test and co-integration test, and operate the selected indicatorsvariables to verify the granger causality relationship between the two by using theirhistorical data, and the paper will constract their generalized differential model.The study proved the existence of Granger causality between financial investment inscience and technology and economic growth. We can know by analyzing the generalizeddifferential model that: the two can promote each other, but the financial investment inscience and technology not as good as the economic growth on the significant.Finally, consider the special situation of financial investment in science andtechnology in Shandong Province and previous empirical findings, the paper proposeappropriate improvements to provide theoretical support for the province’s investment inscience and technology budget, or even the entire financial work.