Study On The Relation Between The Structure Of Fiscal Expenditure And The Economic Growth In Guizhou Province

The activities of fiscal expenditure is the process which meet the public need, and it is the government put the community together to become a part of resource allocation. In our market economy, from the perspective of national economy in general, the allocation of resources is nothing more than two major components, one is allocated by the market and the other is government allocation. The government allocation will achieve goals through fiscal, monetary, administrative and other means, but the most important tool in these means is the activities of fiscal expenditure. Whether the total size of expenditure is reasonable, determines the optimal allocation of society and also affects the efficiency of social reproduction.From an international point of view, as lots of countries continue to expand the scale of fiscal expenditures, the relationship between fiscal expenditures and economic growth is required to research, but unfortunately little research in recent years. The academic achievements in existing research, its objects of data are totally before 2003, and considering the greatly differences between our country and the Western countries, we believe these existing research are not very meaningful for our. From the domestic circumstances, the components of fiscal expenditure are changing and changing with the economic restructuring and transformation of government functions, especially after the reform and opening up, government fiscal begin focus their attention on the macro-control and meets public needs. And a considerable portion of government expenditure projects are referred to the financial market to self-configuration. Therefore, a research of relationship between fiscal and economic is necessary. However, the most of object of current research are the whole China, not particular province, especially for the fiscal structure of Guizhou Province, but this article is based on Guizhou province, through the analysis of the economy in Guizhou Province, to reveal the relationship between the structure of fiscal expenditure and economic growth.Foreign empirical studies have shown that different stages of economic development and different categories of financial expenditure can lead to research contradiction, thus, the article of economic data are commonly used international classification criteria, namely, the functional structure of expenditure, the cost of culture health science education, the business funds for potential,the administrative costs and other expenses.This not only help clear the classification of expenditure between the various functions of the distribution pattern, and help me to clear the dynamics changes in different periods. This can be divided into two parts, theoretical and empirical.In the theoretical part, the author summarizes the research of Chinese and foreign scholars in first, and lay a theoretical foundation through get out of the mechanism which how the fiscal expenditure structure impact on economic, based on research and analysis of this paper. And then, in the empirical part, the authors calculated the elasticity of the expenditure of Guizhou Province and the marginal propensity of financial expenditure, after compared with the national general expenditure, the author find the reasons why Guizhou Province's marginal propensity and elasticity volatile so high, and before the measurement the model, make a brief analysis of economic development in Guizhou Province and the fiscal expenditures. Later, in the quantitative analysis, the authors need to handle the macroeconomic data first, the aim is to eliminate interference with monetary factors, and settled the year of 1978 is base period. Under the guidance of the Cobb-Douglas production function, the author modeled the four fiscal expenditure. After Re-examination and correction the heteroscedasticity and autocorrelation, come to the conclusion that the most impact on economic growth is the expenditure item for the health scientific education and culture, followed by the functional structure of expenditure and the business funds for potential, these three projects and economic growth are positively correlated, while the administrative costs and the economic development of Guizhou Province is negative correlation. The model of Measurement is consistent with economic theory, and the statistical tests obtain a greater goodness of fit, that the above explanatory variables on the interpretation by a higher degree of explanatory variables, the conclusion is more credible.The last part of this thesis is policy recommendations. There is something need to be clear that, despite the scale of fiscal expenditure will inevitable growing with economic development and transformation of government, but some expenditure items must be fair and reasonable and continuous optimization, such as the huge growth in administrative costs caused by such phenomena must be monitored and corrected, or the unnecessary expenditure f fiscal resources not only crowd out other, but also drag on financial efficiency, reduced the effectiveness of economy.In a words, in the modern economy and society, the Fiscal as a public sector is playing an important role. There always exist financial adjustment configurations. Various sectors of national economy, such as enterprises, units, individual residents are also with the fiscal.