An Empirical Study On The Impact Of Local Fiscal Expenditure On Science & Technology And Local Fiscal Expenditure On Education On Regional Economy Growth Based On Threshold Effect

Science & technology are the primary productive forces,and education is the foundation and an important source of productive forces.Local fiscal expenditure on science & technology and local fiscal expenditure on education play very important roles in promoting regional economic growth,and provide endless source of endogenous power for China’s long-term stable economic development in the new period.At present,China is vigorously promoting the free flow of factors and market-oriented reform.Under this background,it is extraordinarily necessary for us to study how to better play the transmission efficiency of local fiscal expenditure on science & technology and local fiscal expenditure on education to regional economic growth.According to the imbalance of regional human capital,the unblanced scale structure gap between the regional fiscal expenditure on science & technology and regional fiscal expenditure on education,and the heterogeneity of the level of regional marketization,this paper takes these three as threshold variables respectively,and construct panel threshold models to study the non-linear transmission and heterogeneous impact of local fiscal expenditure on science and local fiscal expenditure on education on regional economic growth in China’s 30 major provinces,municipalities and autonomous regions(except Tibet)from 2008 to 2017.This thesis first systematically reviews and summarizes the relevant domestic and foreign literatures,theories and metrological methods.Secondly,the trend analysis and threshold range estimation of the three threshold variables,namely,the level of regional human capital,the scale structure gap between the scale and structure of regional financial expenditure on science & technology and regional fiscal expenditure on education,and the level of regional marketization,are carried out,and the corresponding three hypotheses are put forward as follows according to the rationality of theory and reality: Hypothesis 1.The level of regional human capital has threshold effect.That is,under different regional human capital levels,the local fiscal expenditure on science & technology,the local fiscal expenditure on education and the level of marketization have heterogeneous effects on regional economic growth.Hypothesis 2.The scale structure gap between the regional fiscal expenditure on science & technology and regional fiscal expenditure on education has threshold effect.That is,under the difference of the scale structure gap between the regional fiscal expenditure on science & technology and regional fiscal expenditure on education(expressed by the ratio of the two),the local fiscal expenditure on science& technology,the local fiscal expenditure on education and the level of marketization have nonlinear transmission to the regional economic growth.Hypothesis 3.The level of regional marketization has threshold effect.That is,under different regional marketization levels,the local fiscal expenditure on science & technology and the local fiscal expenditure on education have differentiated effect on the elasticity of regional economy growth.This paper uses panel threshold models to conduct empirical analysis to verify the three hypotheses respectively,and obtains the specific dividing standards of the three threshold variables as follows: the single threshold value of regional human capital is about 1.7%;the double threshold values of the scale structure gap between the regional fiscal expenditure on science & technology and regional fiscal expenditure on education is about 3 times and 13 times;the single threshold value of regional marketization level is about 8.59(on a 10-point scale).As an empirical deepening of the panel threshold models,this article further uses the spatial panel models to measure the spatial spillover effect of local fiscal expenditure on science & technology,local fiscal expenditure on education and marketization level on regional economy,and correspondingly measures the interaction effect of local fiscal expenditure on science and technology with regional marketization level and the interaction effect of local fiscal expenditure on education with marketization level.This study draws the following conclusions: the local fiscal expenditure on science & technology,the local fiscal expenditure on education and the level of marketization can not only promote the economic growth of the local region,but also promote the economic growth of its surrounding regions,with significant positive spillover effect;the interaction between the local fiscal expenditure on science & technology with marketization level and the interaction between the local fiscal expenditure on education with marketization level both exist significantly.Finally,the article puts forward the corresponding policy suggestions for the high-quality regional economic development in the new period.