Empirical Study On The Impact Of Fiscal Expenditure Structure On Economic Growth In Jiangsu Province

The effect of fiscal expenditure structure on economic growth is one of the important research objects of scholars at home and abroad, mainly because of fiscal expenditure as an important component of the government’s macro regulation and control, is very important to realize the stable growth of national and regional economy, the fiscal expenditure structure is reasonable in relation to the efficiency of fiscal expenditure and economic growth. In recent years, the economy of Jiangsu province is stabilizing growth continuously and the increase in fiscal expenditure is rising at the same time, the fiscal expenditure structure of Jiangsu province is reasonable or not and whether the economic growth effects of different fiscal expenditure has a difference and how three regional fiscal expenditure structure impact on economic growth in Jiangsu province are worth exploring.In this paper, on the basis of summarizing predecessors’ research institute of the deficiencies, by using descriptive statistical analysis and empirical analysis,the present situation of fiscal expenditure structure of Jiangsu province and the effect of fiscal expenditure structure on economic growth and how the effects of fiscal expenditure structure on economic growth among the south area of Jiangsu,the middle area of Jiangsu and the northern area of Jiangsu are discussed, then put forward policy suggestions on optimizing financial expenditure structure of Jiangsu province. In terms of descriptive statistics analysis, this paper analyzes the present situation of the various projects of fiscal expenditure. In terms of empirical analysis, this paper adopts the panel data of 90 municipal districts and county-level cities and counties in Jiangsu province in 2007-2012, then uses stata12.0 measurement software to analysis the effect of fiscal expenditure structure on economic growth in Jiangsu province and analyzes the effects of fiscal expenditure structure on economic growth in the south area of Jiangsu,the middle area of Jiangsu and the northern area of Jiangsu.The empirical results show that:from the perspective of the fiscal expenditure structure of the whole province,the fiscal expenditure of general public services,social security and environmental protection are not significant on economic growth; General spending (education, science and technology, culture and sports and media, medical and health care) are the obvious promoting effect on economic growth;Urban and rural community affairs and expenditure of economic affairs has obvious influence on economic growth. From the perspective of the fiscal expenditure structure of three regions,the different expenditure items in different region have different impact on economic growth. Based on the results of descriptive statistical analysis and empirical analysis,this paper puts forward relevant policy recommendations, mainly includes:increase general spending and further promote economic growth; broaden the financing channels of urban and rural community affairs and economic affairs; increase spending on social security, widen the financing channel of the social security fund;increase spending on environmental protection, improve the efficiency of fiscal funds for environmental protection; sub regional regulation of public service expenditure, building efficient, economical government;constructing perfect financial supervision mechanism, strengthen the management of the fiscal expenditure.