In recent years, along with the continuous growth of our economic, China’s industrial structure problems are getting more and more severe.In order to maintaining economic growth,we must pay more attention to coordinating industrial structure The defects of the market mechanism determines that the optimization and coordination of the industrial structure can’t do without reasonable fiscal expenditure methods. To encourage the development of the industrial structure in accordance with the domestic and international market law with appropriate fiscal expenditure policies, which could lay the reasonable structure foundation for long-term economic growth. In recent years,theorists pay more and more attention to the relationship between the fiscal expenditure and adjustment of industrial structure,but those research conclusions are different, this is because behind the total fiscal expenditure the more important thing is fiscal expenditure structure and regional differences. Different fiscal expenditure structure and region have led to different effects of fiscal expenditure policies on the product structure, so this paper study of the correlation between fiscal expenditure and adjustment of industrial structure from the two aspects: structure and regional difference.In the theoretical research, this paper divides the fiscal expenditure as five aspects:infrastructure spending,agriculture expending,science,education,culture and health spending,social security expenditure and administrative expenses.Through these representative expenditures to study their mechanism of industrial structure on the basis of consumption theory of macroeconomics, investment theory and the theory of human capital investment.In the empirical research,this panel divides our country’s 30 provinces data from 1992-2012 into three regions and nation wide to establish panel data models,on this basis to study regional differences of industrial structure benefit.In summary,the results of the empirical study shows:Fiscal expenditure structure can significantly adjust the industrial structure in terms of demand and supply.Due to the different regional and expenditure structure,there are many diversities in the effect of fiscal expenditure on industrial structure. Such as in the East,the effect of structure adjustment in science and education spending and administrative expenses is very significant,but the social security spending and infrastructure spending’s effect are limited.we should control the expenditure proportion about basic construction,raise appropriate the proportion of science and education spending and administrative expenses;In the central and Western Regions, the effect of expenditure for agriculture,social security and infrastructure is very significant,so we should raise the proportion of those expenditure and appropriately control the proportion of administrative expenditure.Because of the imperfection exotic environment,the effect of science and technology education expenditure is also not significant. |