Analysis On The Impact Of Local Expenditures On Economic Growth Of Regions

Because the opening policy of gradual innovation is brought into effect, both of the level of economic development and marketing degree are incompletely same in every region of our country. There is also obviously different on the extent of government intervention to each region economy. Moreover the local expenditures are the main measure when it exerts actions to each region economy. There are many learning researches about the relativity between the local expenditures and its economy in foreign countries. Therefore, from another angle of the local expenditures infecting economic development and analyzing how or what it infects regions economy, it is much more definitely real signification.Combining a model of endogenous growth, it researches the influence on the local expenditures to regions economy in both theoretic and demonstrational ways in this study. The main method of the demonstrational analysis is the least two multiplication method, i.e. OLS estimation for an equation of the local economic development. The outcome is that, which is all positive on the local expenditures infecting their regions economy at present, but it is implemented from enhancing TFP, not from obviously elevating single productive factors. Posteriorly, it is all positive of the science, education, civilization, sanitation expenditures in its configuration of the local expenditures. So there are very important to regions economy. The administrational expenditure is all negative, which interprets that it has exceeded its best scale. Yet there are some obvious differences about the economic building expenditure in each region. At last, there are some relevant suggestions to perfect the reformation and administration of the local...