Study On The Effect Of Trade Openness On The Scale Of Government Expenditure

Since 1980s,Chinese made known to the world "Chinese miracle" in terms of economic development.There is no doubt that foreign trade is increasingly put and an important source of economic development.Since the reform and opening up,the trend of economic globalization with China,adding to economic integration and trade integration in the process.To increase economic ties with other countries,expanding opening up.2010 in China is already the world’s largest exporter and second largest importer,among the big trade country in the world has become the forefront of the stable development of world economy in power.At present,in such a large background,according to the The National Bureau of statistics,in 2014 the Chinese government spending reached nearly 1 billion 500 million yuan.In the face of international and domestic economic situation increasingly open environment and rising global volatility,taking into account the trade in the process of opening up the global market imbalance and internationally unfavorable factors may lead to domestic and economic fluctuation in China government departments need to actively play its administrative functions of economic management,to comprehensive analysis,the right to decide,as far as possible to choose the right,cut government fiscal policy,in order to make the government’s public expenditure scale cutting rational allocation and improve party.Not only is Chinese,so is so abroad,The relationship between trade openness and government size has become the international trade and domestic and foreign scholars study the current areas of focus,clarify the basic theory of the relationship between trade openness and the scale of government expenditure mainly for "compensation theory" and "efficiency theory".The "efficiency theory" concern lies in between the two negative correlation is because develop and optimize government emphasis on market efficiency.And"efficiency theory" pointed out that between the two positive correlation is due to the impact of foreign government to compensate the adverse factors and external risk into Chinese caused.But previous studies based on different indices and different measurement methods,and no consistent conclusion.Therefore,through It is of great theoretical and practical significance to study the influence of China’s trade openness on the scale of government expenditure through more micro dataThis paper starts the research from the aspects of theoretical research and empirical research two.The first is in the theory of government expenditure,influencing factors related theory,especially the impact of foreign trade on the mechanism of government expenditure,review and previous literatures,and summarized.Then,the theoretical analysis on the basis of quantitative analysis and the empirical model is established by selecting China’s 35 large and medium-sized city 19992014 years of relevant data,from the perspective of empirical study on Trade Openness on the scale of government expenditure will influence.This paper is mainly divided into six parts.The first part is the introduction,it explains the research background,purpose and significance,content and methods of research,and points out the innovation and shortcomings.The second part summarizes the domestic and foreign research on the literature review.The third part of the government expenditure impact factors related theory of foreign trade and the conduction mechanism of the government scale.The fourth part mainly analyzes the changes and current situation of foreign trade and government expenditure.The fifth part is the establishment of measurement model,to study the influence on the scale of trade openness on government expenditure from empirical perspective.The sixth part is the conclusion and policy recommendations.The innovation of this paper is,firstly,empirical studies at home and abroad by the data basically is international and provincial panel data,the county-level data is less,this is the 35 large and medium-sized city data to more detailed study of the problem.Secondly,in order to address the endogeneity problem of trade openness and government spending in this paper,foreign market access as trade openness tool variables to study the relationship between the two.This paper also has some deficiencies,data availability and integrity based on the paper can not change on 1978.Since the reform and opening up foreign trade on the scale of government expenditure as a whole comprehensive At the same time,considering the changes in the scale of government expenditure in 2007,this article can not study the impact of trade openness on the specific categories of government spendingThrough empirical analysis the following conclusions:government spending decisions is the past,the lag period of government expenditure have significantly positive impact on the current policies of the government.The net effect of trade openness on the impact of China’s government scale is negative,that is to enhance the level of trade openness is conducive to curb expansion of the size of the local government,in line with efficiency hypothesis the scale of inference.The level of urbanization and government expenditure is positive,is in line with expectations,but not significant.The per capita income significantly promotes the size of government expenditure.When per capita income levels increase,government spending levels will be significantly improving,consistent with the Wagner rule.