Research On The Effect Of Public Spendings On The Urbanization In Our Country

Urbanization is not to let the government "dominant", but a spontaneous result under the action of market. It is a activity needs the three parties government, enterprises and social to participate. But the government’s role in the urbanization also isn’t allow to ignore, especially the government’s public spending is vital for the advancement of urbanization. Government ’s spending on public spending can make up for market failure, fulfill the functions of the government, and promote urban economic develop ment. The prime minister Li Keqiang’s government work report in 2014 points out that the urbanization in future must solve the problem of "three 100 million". It will inevitably accompanied by municipal facilities and public service in the process of urbanization of population. The task of the government on public spending is a long way to go. So studying the effects of public expenditure on the urbanization effect has important theoretical meaning and practical meaning.First of all, the paper briefly analyzes to the present situation of public expenditure and urbanization development. From the investment of public spending we can find structural difference and regional difference on our country public expenditure. And we can find the current problem of urbanization from the development of urbanization. Then we use the theoretical model to analysis how public spending to promote urbanization, respectively discuss from two aspects of urban scale and urban spatial structure. O n the influence on the urban size, public input’s "Tiebout effect" attract factor to accelerate the city economic agglomeration. O n the influence on urban spatial structure,we use new economic geography school’s core-periphery model to analysis when urban agglomeration appears not economic, it is helpful to use public goods investment to break the core-periphery structure, promoting the central city and the surrounding cities of division of labor and coordinated development of urban agglomerations. And then we respectively analyze effect of urbanization from the structure of public expenditure and total public expenditure. Again, we use panel data from 1998 to 2012 in 31 provincial level administrative region of the country’s to empirical study public spending impact on urbanization from the total amount and the structure. From the total amount, we can find public expenditure has a significant positive effect on the urbanization process, and from the point of view of regional effect eastern >western > central regions. From the structure, Public expenditure structure can be divided into infrastructure spending, people’s livelihood spending and administrative service spending. We find infrastructure spending and people’s livelihood spending have positive effects on the urbanization, but the administrative service spending’s effect is negative. We also find that the structure of public spending on the influence of urbanization exist significant regional differences.On the basis of the above analysis, we put forward the following s uggestions: steadily improve the public expenditure scale; optimize the structure of public expenditure; optimize allocation of public resources, to promote the equal basic public services; improve funds safeguard mechanism on the public expenditure; improve the expenditure efficiency of public spending.