The Research Of Public Expenditure Transformation's Influence On The Upgrade Of Industrial Structure

The 18 th CPC National Congress Report point out : in order to address the major structural problems which restricts the economy's sustainable and healthy development,the main target is strategic adjustment of economic structure,and the upgrade of industry structure is most important as a center of economic structural adjustment.There is a great relevance between the transformation of economic development mode and industrial structure's adjustment.In essence,the upgrade of industry structure is a means of the transformation of economic development mode.To some extent,promoting industrial structure upgrade can overcome the structural contradictions of traditional economic development mode.The upgrade of industry structure will be the major strategic task during the current or future period.As an important means of government's macro-regulation,public expenditure is an effective carrier of governance foundation,which should guide the social resource to the urgent?the most efficient process and the industrial structure optimization scientifically for promoting industrial structure upgrade.China's transformation of economic development pattern depends on the government's transformation,and the government public expenditure structure's functional scope is determined by the function of government.So,as the government function transformed from economy-construction –type government to public-service-oriented government,public expenditure also transform economy-construction-type into public-service-oriented.There are some prominent influence factors of industrial structure upgrade,such as the input and output of technology innovation,the human capital level,new urbanization,the degree of openness,the degree of marketization.And the paper will analyze public expenditure's impact on industrial structure upgrade from the perspective of the government function transformation which is from economy-construction-type into public-service-oriented.First,the paper analyzes the necessity and importance of public expenditure transformation,deduces that public expenditure's transformation will reduce economy-construction-type spending but increase spending on public service,and indirectly promote the technological progress by the means of the labor quality promotion,production technology innovation,the national average income increase,renovate traditional industries and derive new industries to realize the upgrade of industrial structure.Second,analyze in detail the present situation and put forward the main problems.Then,the focus of this article is empirical studies of public expenditure transformation's effect on industrial structure upgrade.And get the important results of this paper namely public expenditure has a positive impetus on promoting industrial structure upgrade and public service spending can improve the quality of labor,promote technological innovation and improve the consumption structure,indirectly promote the industrial structure upgrade.At the same time,the other empirical conclusion is that the influencing factors such as technology innovation investment,human capital level,new urbanization,the degree of openness,the degree of marketization also have positive effect on industrial structure upgrade,which is reasonable agreement with related theoretical result.Finally,put forward policy suggestions to promote the industrial structure in our country from the perspective of public expenditure transformation.