Analysis Of The Impact Of Fiscal Revenuepen Expenditure On Industrial Structure Upgrading

Since the reform and opening up,China has made remarkable achievements in economic development,the industrial structure has been continuously optimized and upgraded,the income of laborers has gradually increased,the allocation of resources has been rational and efficient,and technological innovation has been changing with each passing day.Since the implementation of the new "Budget Law" in 1994,the local government's financial autonomy has been further expanded,and its ability and motivation have used fiscal policy to guide the upgrading of industrial structure in the region.This paper uses China's 2008-2017 provincial panel data to establish a dynamic panel data model,and empirically analyzes the impact of local fiscal revenue and expenditure on industrial structure upgrading.First of all,this paper conducts a detailed examination of China's fiscal revenue,fiscal expenditure and industrial structure from the aspects of total volume and structure,so as to have a clear understanding of the research object.Then it analyzes the regulation mechanism of fiscal revenue and expenditure affecting the upgrading of industrial structure,and theoretically shows that local fiscal revenue and fiscal expenditure have indeed inhibited the industrial structure upgrade,providing a theoretical basis for the empirical analysis.Secondly,this paper divides fiscal revenue into tax revenue and non-tax revenue,and builds a dynamic panel model based on China's inter-provincial data from 2008 to 2017.Due to the endogenous problem of the dynamic panel model,this paper uses the differential GMM method to perform regression analysis on the above model.At the same time,the quadratic term of the core explanatory variables is introduced in the dynamic panel model to analyze whether there is a threshold effect of fiscal revenue on industrial structure upgrading.The empirical research results show that,because the inflection point is-0.07,in fact,the increase in fiscal revenue and GDP has a restraining effect on the upgrading of industrial structure.This shows that when the growth of government revenue is faster than economic growth,it will bring burden to the development of enterprises.This is not conducive to the upgrading of domestic industrial structure.Thirdly,this paper divides fiscal expenditure into investment expenditure,consumer expenditure and people's livelihood expenditure.The dynamic panel model is established from the total amount and structure level respectively,and the differential GMM method is used to process and obtain the regression result.The quadratic term that also introduces the core explanatory variables analyzes whether there is a threshold effect on the upgrading of industrial structure.The research results show that the increase in the ratio of fiscal expenditure to GDP indicates that the government has “substituted” market entities to make too many decisions,which will inhibit the upgrading of industrial structure;and the increase in the ratio of government investment expenditure to GDP will first suppress the upgrading of industrial structure.When crossing the inflection point,it appears to promote the upgrading of industrial structure.Finally,based on the above research,this paper draws conclusions and proposes policy recommendations.It believes that the government should adopt fiscal revenue and expenditure policies that are appropriate to the level of economic development according to local conditions.For example,through tax reduction and fee reduction measures,market participants should have more autonomy and increase government investment.The proportion of expenditure provides better basic construction for industrial development,etc.