Research On The Impact Of The Scale Of Public Service Expenditures On Economic Growth In Jiangxi Province

Promoting economic growth through the expansion of public service expenditures is a very common phenomenon in many countries,especially in developing countries.However,the scale of expenditure on public services can not be expanded indefinitely.Blindly expanding the scale of public service expenditure and ignoring the level of economic and social development will hinder the growth of the national economy.Therefore,studying the impact of the scale of public service expenditure on economic growth is of great realistic significance for the formulation and implementation of government expenditure policy.In order to study the relationship between the scale of public service expenditures and economic growth in Jiangxi Province.The article first reviews the relevant theories and research results on the scale of public service expenditures and economic growth,then combines them both from the demand side and the supply side to formed a complete theoretical analysis framework.From the framework,we can find that the impact of public service expenditures on economic growth has two paths: one is through the impact of demand factors and the other is through the impact of supply factors.Next,along the framework of analysis,we first test the relationship between the scale of public service expenditure and economic growth in Jiangxi Province.Test results show that:from 1978 to 2015,the scale of public service expenditure in Jiang xi Province were on the rise;Although the share of public service expenditure in GDP fluctuated,it still showed a growing trend;Since 2011,public service of the expenditure growth rate basically faster than the economic growth;The affection of public service expenditure in Jiangxi Province on economic growth were in the role of impediment to impetus,and it declines slowly after2008.Then,we examine the impact of public service expenditure on economic growth separately from the resident consumption effect,private investment effect and technological progress effect of public service expenditure.The test results show that there exists a path of public service expenditure affects economic growth through influencing residents' consumption,private investment and technological progress.While there is a "crowding-in effect" in the long-term of public service expenditure on economic growth.The scale of public service expenditures is basically only affected by its own policy factors.In order to make specific suggestions,this article calculates the optimal scale of public service expenditure in Jiangxi Province according to "Barrow's Law".Concluded that: the current scale of Jiangxi Province public service expenditures have been close to the optimal standard,but there is still some upward potential.Finally,based on the above research results and the provincial conditions in Jiangxi Province,it is proposed that: we must accurately grasp the provincial conditions of Jiangxi Province and appropriately expand the scale of expenditure;We should make efforts to narrow the gap between the rich and the poor and promote the consumption of residents.We should open up private capital and increase the scale of public service expenditures;It is necessary to establish a sound system and mechanism to improve the efficiency of science and technology achievements into productivity.From these perspectives,we try to solve the existing problems of public service expenditure in Jiangxi Province and points out some shortcomings of the article.