| China is currently in development from the traditional extensive way to productivity-driven as the core of the intensive development in the process of transition. How the government should choose a more reasonable size and structure of public expenditure to promote economic growth, is an urgent practical issues. In this context, the paper attempts to theoretical and empirical level, the system of public spending on economic growth and its relationship. The paper in the first has made a comprehensive review to the domestic and foreign scholars on public expenditure and economic growth in the theoretical and empirical research, found that most of the existing literature examines quantity effects of public spending on economic growth, moreover these largely remain in the basic principles, simple qualitative analysis and countermeasures, systematic and in-depth nature inadequate. So first the construction theoretical models of public expenditure within the framework of economic growth derived equations for econometric tests. Second, the empirical level, national time series using 1978-2008 data and 1997-2008 inter-provincial panel data regression, and growth rate are further divided into primary industry, secondary industry and tertiary industry growth rate of three parts systematic and thorough investigation from the three aspects of total public expenditure and its internal structure and the empirical relationship between economic growth. Through the analysis of the national time series, estimate the best size of China's public expenditure is 28.37% , the public expenditure growth rate on the three industries ranked by the degree of influence is the growth rate of the third industry, the first and second industrial growth rate. China's public expenditure structure in terms of increased economic growth played a major role in promoting the growth is defense expenditures, administrative expenses and other expenditure growth rate, rather than the growth rate of economic expenditure. The panel data analysis of the provincial, although there are regional differences in the results, but also reached a similar conclusion. On this basis, summarized and extract all kinds of public spending for economic growth mechanism,, and then how to develop effective government at all levels of public expenditure policies to promote economic growth and economic development of monitoring methods will provide transition suggestions. |
