A Study On The Effect Of China 's Fiscal Policy On Economic Growth

Under the effect of "The Asian financial crisis"and "the US subprime mortgage crisis", the Chinese government rolled out proactive fiscal policy to deal with the impact of the crisis. There are some controveries about China’s proactive fiscal policies for China’s economic growth effect. This paper study the relationship between proactive fiscal policy and economic growth and the relationship between proactive fiscal policy and the economic construction cost change based on Chinese macroeconomic data by using cointegration analysis and error correction model.Studies show that proactive fiscal policy is indeed brought to China’s economic growth pulling power, this pulling power of growth should mainly comes from the government leading investment, and the short-term effect is greater than that of its long-term effect for fiscal stimulus policy.So there is the risk of unsustainable. The paper put forward relevant short-term and long-term policy Suggestions for the implementation of active fiscal policy, including that the proactive fiscal policy should clear the short medium and long-term goals, to determine the role of policy direction and size; Because the policy stimulus is unsustainable,it must have related implementation and exit time arrangement; In the short term it should focus on the proactive fiscal policy to bring financial risk, economic growth risk and inflation risk; In the long-term it need to form a clear goal of macroeconomic regulation; Through the financial expenditure subsidy policy to promote industrial upgrading and optimizing the industrial structure; it Focuses on investment demand and consumption demand structure contradiction, avoiding the effect of the emergence of investment dependent;it should to pay attention to sustainable long-term investment strength development, actively promoting the market mechanism allocate the resource.