The Chinese Fiscal Expenditure Structure For The Regional Industrial Upgrading

With the reform and open-up policy,our country's economy had welcomed a rapid period of development for more than 30 years,comprehensive national strength and international status has also been significantly improved,and officially entered the ranks of middle-income countries.But, with the high-speed development of economy,the mode of production in our country still stays in the low-level processing and manufacturing of high input and low output, low level of industry and weak technology innovation ability, the sustainable development ability is not strong, and the low additional value and technology content, this also gives Chinese-made labeled as the "low-end, low-cost".In recent years, with the rising cost of labor, the higher standard of environmental regulation, and the slow global economic growth and other domestic and foreign factors,which will makes our products'low cost advantage no longer exists,industrial transformation and upgrading has became an inevitable choice.Transformation and upgrading of industrial structure must through a combination of government and market to achieve the readjustment of the Chinese industrial structure, and by the market has decisive role, the government as a supplementary means, plays a leading role to the market to promote the optimization and upgrading of industrial structure is more conducive.Therefore, studying the effect of fiscal spending to upgrade industrial structure has important practical significance.So this paper refers to the related papers of domestic and foreign, and further to systemize and analyze previous studies of financial and economic growth theory and industrial upgrading theory, and combining with the new economic geography to put the space factors into the framework of the study, which make the research of this paper is built on a solid theoretical basis.And then reuse the Chinese provincial panel data, bringing in the spatial econometric analysis technology, using the Space Durbin Model (SDM) to empirical analysis the influence of fiscal expenditure structure on the industrial structure upgrade,and further divided the country into eastern, central and western areas to empirical analysis,and drew the following results:(1) the distribution patterns of industrial upgrading in China had an increasing positive spatial agglomeration;(2)different fiscal expenditure items had different influence on the industrial upgrading,and presents the heterogeneity in different area:the eastern region education significantly promoted the upgrading of industrial structure, while in the west shows negative correlation;the health care is only good for industrial upgrading in the western region, but in other parts of effect is not obvious;in general,the technology spending have positive effects on industrial structure upgrade,but the impact has a big spatial heterogeneity;the social security and administrative expenses were only positively correlated and negative correlation with industrial upgrading in the national regions,and it is significant in statistics, but in other parts,the effect is not obvious;Other non-productive expenditure in nationwide? eastern and central area have very significantly positive effect on industrial upgrading.Based on the above conclusions, in the end,the paper put forward the policy Suggestions on optimization of fiscal expenditure structure:(1) using spatial spillover effect to promote the upgrading of industrial structure;(2) we will continue to increase the investment of education, and guide the talent flow to the central and western regions;(3) increasing medical expenditure on health and social security expenditure to promote the upgrading of consumption structure;(4)maintain steady growth in technology spending, and make scientific and effective management;(5)adjust the general public services for different areas;(6)increased the non-productive expenditure steadily.