The Analysis Of Chinese Regional Revenue Impact On Social Security Expenditure

Since 1978, China has reformed the social security system and gradually converted the original insurance business into the social insurance. Since the late 70s, the rapid economic growth has aroused attention of the world。Amid a variety of reforms, the central government's behavior of decontrolling its fiscal power is considered an important factor for the great contribution of the economic growth. However, this resulted in inter-regional competition, and also makes the various inter-regional differences in economies of scale generated. With the structure of aging population in China, the social security expenditures is always a major expenditure item for the local government, even though the local government's financial burden, but whether affected by the development of the regional economy? From the research and thesis of development economics, it can be found that there are two different conclusions between the impact of social security expenditure and economic scale; As for China, there is also a polar conclusion.This article's aim is to explore how Chinese social security expenditure is affected by the regional economic scale differences of different provinces. We will take advantage of Chinese provincial-level tracking data for analysis of regional economic scale differences on social security expenditure. By reviewing the current literature, this paper will establish a more complete framework for the econometric model for the various effects of social security expenditure variables. In addition, this article will also make a clear introduction to the current Chinese social security system and the history of its development, and identify the problems confronted nowadays. Finally, considering the basic pension and basic medical expenditures affected slightly by different factors, the paper has established two kinds of empirical models, to further study the different expenditure by economic differences in respect of the impact of the development scale. Sorting out how social security expenditure impacted by economic scale, which is subject to the government's reform as a reference.