Study On The Economic Effect And Efficiency Of Local Government's Public Cultural Expenditure In China

Since the reform and opening up,Chinese economy has developed rapidly.Therefore,citizens demand highly for the spiritual-cultural life as the increasing level of the material life for culture is important in enriching residents' life,cultivating their sentiment and improving their quality.For this purpose,Chinese government plays a leading role in the construction of public cultural service system to promotes cultural development between urban and rural areas in recent years.Due to the differences of economy among regions,economic effect and expenditure efficiency of public cultural expenditure also differ.Therefore,this paper takes the corresponding data of 31 provinces and cities in China from 2006 to 2015 as samples to analyze the economic effect and expenditure efficiency of local governments' public cultural expenditure.In this paper,the empirical research is mainly divided into two parts.The first part explores the economic effect of public cultural expenditure by using two stage least squares method and GMM.The research finds out a positive correlation between public cultural expenditure and the economic growth,but the regional difference exists.The public cultural expenditure of the east dramatically promotes the economic growth,followed by the middle part,the western region the lowest.Strangely,the proportion of public cultural expenditure to the fiscal expenditure in the western region is relatively high,while the economic effect is not significant.Therefore,in the second part,this paper further analyzes the efficiency of public cultural expenditure.This paper adopts three-stage DEA to analyze the efficiency of expenditure.The first stage uses traditional input-oriented BCC method,while the second stage uses SFA eliminat enviactors and random errors to adjust the input and output data.Finally,the third stage replaces the adjusted input-output data and put them into the first stage to reach the final real expenditure efficiency.The results show that the efficiency of local government's public cultural expenditure has not yet reached DEA,and the main source of inefficiency is scale efficiency.Based on researches above,our government should not only give policy support to the backward areas,but adjust the cultural expenditure structure,improve the management level of funds,build a reasonable mechanism of financial funds and introduce diversified subjects to participate in the construction of public cultural service system.