Study Of The Relationship Between Fiscal Expenditure And Economic Growth

Economic growth has always been the core issue of Macroeconomic Studies. Government expenditure is an important tool to achieve its functions, sound fiscal expenditure scale and structure of science not only can effectively regulate the economy, but also can effectively regulate the allocation of resources, and guide the healthy development of the economy. Spillover space is ubiquitous and can not be ignored. Through labor migration between regions, capital flows, technology transfer, etc., are not carried out before every moment to interact with the backward areas. Inter-regional spillovers discuss significant financial expenditure.Based on previous studies, by the panel data regression, spatial Granger causality test and spatial Durbin model and other methods, the data of 2000-2012 years of use, at the Hong Kong, Macao and Taiwan to China’s 31 provinces outside of relationship between economic growth and fiscal expenditure explored analysis. The results show that the total expenditure on economic development has a positive role in promoting each other and both Granger causality; by estimating the spatial Durbin model, infrastructure, public services expenditure category for positive GDP surrounding provinces role in promoting social expenditure and the surrounding provinces, showing inhibition of negative GDP. Description in fiscal expenditure structure design, the government can further expand the size of the total expenditure, and increase infrastructure, public service expenditure category, while the rational planning of social expenditure, improve the efficiency of financial resources more efficiently promote the economic growth of China’s provinces.