Research On Economic Growth Effect And Equity Effect Of Fiscal Expenditure In Hebei Province

The development of economy has entered into a new normal and is confronted with relatively large downward pressure, which is bound to convert the rapid growth trend of fiscal revenue in Hebei Province. However, the rigid demand for reform and livelihood is continually expanding. Meanwhile, arduous tasks, such as the transformation and upgrading of industrial structure, are needed to be solved. Consequently, research on the effects of fiscal expenditure is of great significance, especially for relieving the contradiction between revenue and expenditure, improving the efficiency of government funds, formulating effective fiscal policy and promoting the economy for better development with stability. Currently, compared with the equity effect, research on economic growth effect of financial expenditure is more mature. The paper will take the two into consideration, which is beneficial to achieve the intrinsic unification that exists between efficiency and equity of the financial expenditure. The main contents are as followed.Firstly, related concepts of fiscal expenditure are introduced, economic growth theory and equity theory related to fiscal expenditure are presented. Based on descriptive statistics and comparative analysis, the paper describes current situation of financial expenditure of Hebei Province, and points out the existing problems.Secondly, the paper takes advantage of Multivariate Linear Regression to analyze optimal scale of fiscal expenditure based on related model. After the Vector Autoregression Model is established, the paper, using impulse response,focus on the influence of fiscal expenditure to the direction of economic growth. Following the effects and contribution of expenditure structure to economic growth, the paper analyzes the impacts, that the proportion of four expenditures has on output efficiency of factors, to indicate its indirect economic growth effect.In the next place, the establishment of Fixed-effect Variable Intercept Model is to analyze the effect that the relative scale of expenditure has on equity. Base on Vector Error Correction Model, the paper adopts impulse response function analysis to study equity effect of expenditure structure. At the same time, the paper explains the extent of the influence through variance decomposition.Finally, recommendations to promote economic growth and social equity are put forward respectively, after combining the situation with the problems of fiscal expenditure and taking relative theory and empirical findings into account.