Fiscal Expenditure Structure And High-quality Economic Development

Fiscal expenditure is an important guarantee for government macro-control and realize government functions,which is of great significance for guiding economic development.The report of the 19 th National Congress pointed out that Chinese economy has entered a stage of high quality development.The structure of fiscal expenditure should also be adjusted accordingly to maximize the functional role of fiscal expenditure and contribute to the high-quality development of the economy.This paper adopts a combination of normative and empirical research methods,and combines the structure of fiscal expenditure with the quality of economic development.First,the paper introduced the related concepts of fiscal expenditure structure and the quality of economic development,and theoretically analyzed the impact mechanism of fiscal expenditure on the quality of economic development.Secondly,based on the above theoretical foundation,summarize the connotation of the quality of economic development,and build a comprehensive index system of economic development quality from five aspects: growth momentum,growth structure,growth stability,people's livelihood and green development.Using the panel data of 30 provinces and cities(excluding Tibet)from 2007 to 2017 to quantitatively measure the quality of economic development in each province and city,and then use a systematic GMM empirical method to examine the impact of fiscal expenditure structure on the quality of economic development,and conduct a series of stability test.The research results show that,at the macro level,all types of fiscal expenditures have a positive effect on the quality of economic development,and they are ranked from large to small in terms of environmental protection expenditures,social security and employment expenditures,science,education,cultural and health expenditures,economic construction expenditures,General public service expenditure.At the meso level,expenditures in science,education,culture,health,social security and employment,and economic construction expenditures in the eastern,central,and western regions all have a positive impact on the quality of economic development.There is obvious regional heterogeneity in the impact of general public service expenditure and environmental protection expenditure on the quality of economic development.The positive impact of environmental protection expenditure on the quality of economic development is most effective in the eastern and central regions,but it is significantly negative in the western region.The effect of general public service expenditure on the quality of economic development in the eastern region is even higher than the expenditure on social security,expenditure on science,education,culture,and health.It shows a weak positive promotion effect in the central region,while is not fully utilize in the western region.Finally,based on the above analysis,we propose policy recommendations to optimize the structure of fiscal expenditures,based on the development characteristics of each region,it proposes reasonable and differentiated fiscal expenditure policy recommendations,adjusts and optimizes the structure of fiscal expenditures according to local conditions,determines the focus of fiscal expenditures,and enables high-quality economic development.