The Research On China Local Fiscal Expenditure Size And Structure With Local Economic Growth

With the reform in fiscal system since 1998, local fiscal expenditure has an increasing effect on local economic growth.how to optimize local fiscal expenditure to promote economic growth effectly has became the central matter for the local government. Positive analysis on local fiscal expenditure size and structures with local economic growth is helpful to understand the impact of local fiscal expenditure on the economic growth.The article analyses the optimization of Chinese local fiscal expenditure from three aspects: Develops an analytical framework which links the fiscal expenditure size and the composition of fiscal expenditure with the economic growth, and we can find the size and the composition of local fiscal expenditure has important effect on economic growth,if we want to exert the economic effect sufficiently,the government should optimize fiscal expenditure size and fiscal expenditure structure; Empirically analyzes the relationship between Chinese local fiscal expenditure size,structures and local economic growth by Panel Data, and the research result indicates that China's eastern and western scale of fiscal expenditure preponderate over the optimization fiscal expenditure size, the scale of fiscal expenditure of middle area is under the optimization fiscal expenditure size. The basic construct ratio of eastern and the middle area is negatively correlated with economic growth, the western region is actively correlated with economic growth, the eastern,middle and western regions of the proportion of expenditure on agriculture is actively correlated with economic growth, the proportion of social security expenditure is the same. The science,education,culture,sanitation expenditure ratio of eastern and the middle area is actively correlated with economic growth, the western region is negatively correlated with economic growth. The proportion administrative expenditure of the eastern region is negatively correlated with economic growth, the middle and the western regions is actively correlated with economic growth; Finally, through positive research, the article gives some policy suggestions.