The Study About Influence Of Fiscal Expenditure And Regional Ecomomic Growth

Public finance promotion, as one of the main reasons of economic long-run growth of our country, not only is responsible for the provided basic missions by public material and social administration service, but has provided a mature system logic for traditional model of economic growth of our country-----the "government dominated" economy. Since reform and open, local government finance expenditure competition has become the primary driving force of promoting the unbalanced growth of regional economy. Not only can the special growing situation of nationwide uneven development strategy be satisfied, but also can local government be provided the dominant promotion incentive and actual rights of allocation of resources through progressive financial decentralization. On based of institution change, this kind of system bonus has promoted the competitive strengthen of local public finance expenditure significantly, and further local economic growth through two processes-----finance expenditure expansion and structural improvement. This article, through the dynamic investigation of the economic growth effect and social wealth effect of finance expenditure (structure and scale) change, used the past economic data from the whole country and Chuan, Zhe two provinces to build a Polynomial Finite Distributed Lag Model to do an empirical study, finally found out that:(1)During the research of Chinese area, the condition between the finance expenditure scale and industrialization, the level of economic development accorded with Wagner’s law basically. But what doesn’t accord with the tendency of Kuznets inverted U structure strictly is the finance expenditure scale change and regional income gap. And the gap between urban and rural and regional finance expenditure scale has already presented Kuznets inflection point.(2)Whether the whole country or Chuan, Zhe two provinces, the total scale of finance expenditure, finance expenditure structural improvement and productive expenditure, unproductive expenditure can also promote regional economic growth positively. What’s more, on the level of the whole country, financial decentralization is also an important reason that influences regional economic growth. Financial decentralization has provided local government a strong institution bonus, and promoted the achievement of local finance expenditure competition on based of the balance of interest. It is to the benefit of government to bring public products providing evenly come true.(3)Because of the difference of developing extent between the whole country and Chuan, Zhe two provinces, the difference exists in finance expenditure scale, the extent of structural improvement, productive expenditure and unproductive expenditure is a considerably phased one, and finally shows in variables to the lag period of economic growing contribution and the polarization of income gap between urban and rural. However excessive finance expenditure scale and productive expenditure take no advantage to restrain the gap between urban and rural, it makes positive contribution to further widen the income gap between urban and rural. So what should be paid attention to by local government is the appropriate adjustment between the dynamic and consequence of economic growth.(4)Current local finance expenditure invest low level homogeneity of competition and structure and over enormous finance expenditure are the main reasons of the missequence of local finance expenditure competition and the unbalance of local finance growth, so it is necessary to correct. The primary strategies can be considered include:improving the public service function of local finance expenditure, deepening the reformation of finance institution, ameliorating the efficiency of finance expenditure to promote the effective cooperation between local finance expenditure and regional developing strategy, building finance cooperation and coordination mechanism between regions and so on, to promote coordination and balance of regional growth of finance expenditure.