Research On The Influence Of China Fiscal Expenditure On People's Livelihood On Residents' Consumption

The consumption is one of the three carriages stimulating economic growth,a high level of consumer demand promotes the sustainable development of national economy.While at present,our country still faces the problem of insufficient residents' consumption,which has seriously hindered the process of stable increasing economic growth,and has brought negative impacts on the healthy operation of national economy.Therefore,to promote economic growth and to achieve sustainable economic development,the government needs to expand domestic demand and to improve the residents' consumption demand.In recent years,the people's livelihood problem has become the concerned focus of the whole society,the government also put more and more attention to the fiscal investment in the field of people's livelihood.Along with that,to find out how the fiscal expenditure on people's livelihood influences on the residents' consumption and how to arrange the fiscal investment in the field of people's livelihood,are becoming hot issues and focuses of academic research.However,the studies of the past many scholars at home and abroad mostly focused on the relationship between fiscal expenditure and residents' consumption,and have not formed a unified research conclusion.Although in recent years,domestic scholars have gradually started to study on the relationship between the government spending on people's livelihood and the residents' consumption,there still exists the lack of the multiple perspectives of scale,and structure in different regions,which cannot fully and effectively put forward targeted suggestions for the arrangement of the investments in the field of people's livelihood.Based on this ground,this paper firstly reviews the related research both at home and abroad,clarifying related theories of the people's livelihood finance,fiscal spending on people's livelihood and residents' consumption.Secondly,this paper analyzes the mechanism of fiscal expenditure on people's livelihood functions on residents' consumption,and then introduces the current situation of fiscal expenditure scale and structure on people's livelihood and the residents' consumption level our country.Finally,this paper takes several empirical tests on the relationship between the fiscal expenditure on people's livelihood and residents' consumption respectively from the angles of the scale and the structure in different regions.Specifically,using the time series data from 1978 to 2013,this paper takes co-integration test and builds the VEC models,to empirically test the relationship between China's fiscal expenditure scale on people's livelihood and urban and rural residents' consumption.Then,using the panel data from 1998 to 2013,this paper establishes relevant variable intercept models through F test and Hausman test,to analyze and compare the effects of fiscal expenditure structure on people's livelihood on urban and rural residents'consumption in eastern,middle and western region.The results show that,the fiscal expenditure scale on people's livelihood has significant crowding in effect on the overall consumption,and the effect of rural residents' consumption is greater than that of urban residents' consumption.In different regions,the influences of Education expenditure,Health expenditure and Social security expenditure on the overall consumption are different,which reflects the regional differences.So,considering the reality of our country,this paper argues that,in terms of scale,the government should continue to increase investment in the field of people's livelihood,to stimulate consumption,promote economic growth;In terms of different regions and different parts of fiscal expenditure on people's livelihood,the government should take into account the actual situations of different regions,to make reasonable arrangements of fiscal investments on people's livelihood,implementing policies specifically,to promote the balanced development of each area,thus driving the growth of overall residents' consumption level.