Economic Growth Effect Of Social Governance Expenditure In China

In macroeconomic theory and practice,the scale and structure of government expenditure have always been the focus of economists.Usually,government expenditure is divided into government purchase expenditure,transfer payment and subsidy,which is based on whether there is value feedback or whether the government appears in the market as a buyer.The classification of government expenditure used in this paper is functional classification,that is,government expenditure is differentiated according to the specific functions of the government,and social governance expenditure variables are selected as explanatory variables.Of course,since social governance is the organization,planning,guidance and intervention of the government for the welfare improvement,people’s livelihood security,social stability and social equity in national governance,social governance expenditure may be reflected in the form of government purchase expenditure or transfer payment.If the expenditure of social governance is the cost of social governance,then the output of social governance is the benefit of social governance.To clarify the relationship between social governance costs and social governance benefits is of great significance for defining the scale of social governance expenditure and improving the efficiency of social governance expenditure.Strictly speaking,the income of social governance expenditure should be considered by social development indicators.For the purpose of research,this paper only studies the relationship between social governance expenditure and economic growth.Based on the relevant literature,this paper takes public security expenditure,social security and employment expenditure,education expenditure,cultural media and sports expenditure,and medical and health expenditure as the content of social governance expenditure,which is different from the Keynesian economics of "acting against the wind" and "making opportunistic choices".From this point of view,social governance expenditure belongs to the category of expenditure for the production of special public goods.Based on the logical relationship between social governance expenditure and economic growth,we assume that the increase of social governance expenditure is conducive to the improvement of social governance capacity and governance level;There is a positive relationship between higher level of social governance and economic growth.Just as traditional economics simultaneous interpreting the effect of government expenditure by multiplier effect,this paper uses empirical method to analyze the income effect of social governance expenditure.Although this method can not explain the source of economic growth,it can explain the income realization under the given resources and technology endowment.This paper first reviews the relevant literature and research results of social governance and social governance expenditure,analyzes the ways of social governance expenditure affecting economic growth,and puts forward that social governance expenditure is conducive to social stability,improving consumption constraints,boosting consumer investment confidence,increasing investment in high-quality human capital,and promoting economic growth.Secondly,based on the expenditure method to measure GDP,starting from the simple expenditure income decision model,this paper introduces the variables of social governance expenditure to build a theoretical model to study the economic growth effect of social governance expenditure.Taking into account the spillover effect of social governance expenditure and the inter regional relationship of economy,this paper establishes a spatial econometric model based on the classical econometric model to empirically analyze the relationship between social governance expenditure and economic growth.Finally,according to the empirical results,we draw conclusions and put forward corresponding policy suggestions.First,moderately increase social governance expenditure,improve people’s livelihood,maintain social stability,and promote economic growth.Second,improve the structure of social governance expenditure,improve the level of governance,and promote economic and social development.Third,when formulating policies,the provincial governments should pay attention to the economic and social development of the region,and strengthen exchanges and cooperation with the surrounding areas,which is not only conducive to promoting the level of social governance and economic growth in the region,but also conducive to radiating to the surrounding areas,so that China’s economic and social development level can be improved as a whole.