The Correlation Analysis On The Relationship Between Corruption And China’s Economic Growth Based On Three Kinds Of Public Expenditure

Corruption is a kind of complex economic and social problems. It is not only theproblem that concerned by politicians, but concerned by also scholars and board massesof the people. The twelfth five-year plan and the eighteenth national congress of theCommunist Party of China both put forward new understandings and requirements onauti-corruption. Therefore researching on corruption has vital practical significance inthe present age. Theoretically, public spending has a promoting effect on economicgrowth. And in terms of efficiency, corruption can be affecting the public expenditurescale and bias to indirectly affect economic growth. However, the indirect influencemay be different in different aspects, such as infrastructure, education, social securityand so on. Hence this paper discusses the relationship between corruption and economicgrowth based on three types of public expenditure.The contents and conclusions are as follows: First of all, depending on readingpapers, the author sorts out four parts of components. In part two, a theoretical modelhas been built on the basis of Jinge and Shi jinchuan(2010). In this model, I havededuced the social optimal path with corruption accompanied by Hamilton Function.Part three is the content of empirical test. In this part, public expenditure has beendivided into three forms, pure productive spending, pure consumer spending and mixedspending. The number of cases of corruption and the Corruption Perception Index areused to measure the level of corruption. Part four summarizes some conclusions andexpectations.Through theoretical and empirical researches, the main conclusions of this paperare as follows:1. On the social optimal path with corruption accompanied, the corruption variableis negatively related to the output by the pure productive spending andproductive-consumer mixed spending, and the corruption variable has positive effect oneconomic growth by pure consumer spending when on the assumption of.2. Economy spending efficiency is low. This article divides the whole publicexpenditure into economy spending, maintenance spending and social spendingcorresponding to the three expenditures in the theoretical model. The results of measurement show that the elasticity of economy spending is not very big, while theelasticity of maintenance spending is maximal. It proves that economy spendingefficiency is low.3. From the long-term equilibrium, the relationship between corruption andeconomy growth through public expenditure is inverted “U” shape. It proves thatcorruption through public expenditure on the long-term equilibrium impact on theeconomy tends to block, especially through social spending. Based on CorruptionPerception Index, Corruption restrains on economic growth through economy spendingand social spending after the inflection point of corruption.4. Corruption hinders economy growth more obviously in the short-term byeconomic spending. After given a positive impact, corruption will promote economicgrowth firstly, but during three to five years, corruption will hinder economic growth byeconomy spending and social spending, and negative effect is more obvious in thesocial spending.