Research On The Relationship Between Social Security Fiscal Expenditure And Economic Growth

The social security system,fundamentally speaking,is a kind of system that the state relies on the social security fund and provides security for the basic life of citizens according to certain laws and regulations.It can guarantee the fairness of rights,opportunities,rules and distribution.In the past 40 years of reform and opening up,China’s economy has gradually stabilized on the basis of leaping development.People’s life has experienced several stages,including poor food,basic food and clothing,basic well-off and all-round well-off.At the same time of economic development,the social security system is also constantly reforming and improving,and the absolute value and growth rate of social security financial expenditure have been greatly improved.As we all know,domestic demand,investment and export are the "three carriages" that affect economic growth,while social security system influences economic growth by stimulating domestic demand and increasing investment.In addition,social security fiscal expenditure is an important part of government fiscal expenditure.Therefore,more and more experts and scholars pay attention to and study the relationship between them.At present,a large number of scholars have carried out research on the impact of social security on economic growth,but no consensus has been reached.Some scholars,such as Xu Huiyan(2015),found that in the composition of social security financial expenditure,social insurance fund subsidies,employment subsidies,and urban and rural minimum living security promoted economic growth.Some scholars,such as Liu keying(2012),found that the impact of social security expenditure on economic growth is not obvious,which may be related to the proportion of social security expenditure in gross national product(GDP).Therefore,it is necessary to make further empirical analysis of the relationship between the two.In addition,some of the studies only select a single provincial region as the sample,involving 31 provincial regions of the country’s empirical analysis is less.Therefore,this paper aims to make further discussion on this issue based on 31 provincial regions in China.The study first analyzes the current situation of the national social security fiscal expenditure,and finds that:the total amount of the national social security fiscal expenditure continued to grow from 2007 to 2017,but the growth rate of the social security fiscal expenditure has certain volatility;compared with the growth rate of the social security fiscal expenditure and the GDP growth rate,both are positive,but the former is always higher than the latter,and the difference between the two is not fixed.Then,the paper analyzes the differences of social security fiscal expenditure in 31 provincial regions,and finds that:in terms of total social security fiscal expenditure,the regional differences are large,but the proportion of social security fiscal expenditure in 31 provincial regions is relatively concentrated between 10%and 15%;while the absolute value of social security expenditure growth rate and GDP growth rate between different provincial regions is significantly different,Through the comparison of the two growth rates,it is found that the growth rates of social security fiscal expenditure and GDP are not identical.Finally,on the basis of Cobb Douglas production function,the error correction model is constructed.The fiscal expenditure of social security is selected as independent variable and economic growth as dependent variable.The amount of capital input and labor input are controlled.The impact of fiscal expenditure of social security on economic growth in 31 provincial regions(2007-2017)is empirically analyzed.It is found that there is a significant regional difference in the impact of social security fiscal expenditure on economic growth.There is a negative correlation between social security fiscal expenditure and economic growth in Inner Mongolia,Jiangxi,Hainan and Yunnan,and a positive correlation between social security fiscal expenditure and economic growth in other provincial regions.This may be caused by the economic growth rate,the proportion of social security fiscal expenditure structure,fiscal expenditure policies and other aspects of the provincial areas.I hope this study can provide the basis and reference for the reform of social security system and public financial expenditure.The limitation of this paper is that the empirical analysis between the two is mainly to build a simple error correction model,which is relatively single.The analysis of the reasons for the conclusion is not comprehensive and accurate due to the influence of experience and theoretical level.In addition,the situation of each provincial region in China is very different.Because the final suggestions of this article are not enough for the overall consideration,they are not necessarily suitable for all provincial regions It is the driving force and direction of learning and life in the future.I hope to study hard and supplement and improve the existing deficiencies as soon as possible.