Study On The Efficiency Of Public Expenditure And Economic Growth Considering Corruption

In recent decades, the frequency of economic crisis has become higher and higher, which makes people gradually realize that laissez faire market economy era is gone, the normal operation of the economy, in addition to the role of the market, but also need the government to carry out macroeconomic regulation and control. But the government carries on the macroeconomic regulation and control mainly has three means: economic means, political means and legal means. The main economic means of macro adjustment and control of the government has the fiscal policy and monetary policy. But taking into account the control and the stability of the financial market, the financial policy has become the main economic means of macroeconomic regulation and control. So the higher efficiency of public spending has important role in promoting China’s economic growth.As the legal system is not perfect, the lack of supervision, leading to China’s current stage of corruption is serious. According to statistics, during China’s 90 generation century years, the average annual economic losses caused by the corruption of the proportion of GDP 14.5%-14.9%, the amount of losses of up to 1 or even more than 1 trillion yuan($200 billion), but also to further expand.In this paper, we study the impact of public spending efficiency on economic growth, while introducing the efficiency of corruption and public expenditure as the interference term, the main conclusions of this paper include:(1)To construct a suitable index for corruption measurement, and to measure the degree of corruption in China, which is a measure of the degree of corruption in China. Then, this paper calculates the degree of corruption in various regions of our country over the years, and as the basis of later calculation.(2)Building evaluation index system, using data envelopment analysis(DEA) method, the efficiency of public expenditure in our country is evaluated, and as the basis of the following. The results show that there is a big difference between the public expenditure efficiency in different regions. The comprehensive efficiency of public expenditure in most areas is in the stage of increasing returns to scale, which means that expanding the scale of public expenditure can improve the efficiency of public spending. Regional public expenditure technical efficiency is high, which shows that the majority of local public spending is effective, and the efficiency of public expenditure in the region is the main reason for the difference of the efficiency of the overall efficiency.(3)The economic growth panel data equation is established by introducing the efficiency of public expenditure and the efficiency of public expenditure and corruption.Then carry out the single integer and cointegration test.It is found that the efficiency of public expenditure has a greater effect on economic growth, but the existence of corruption weakens the positive effect through the effect of public expenditure.