Study On The Relationship Between Fiscal Expenditure Structure And Economic Growth

The relationship between fiscal expenditure and economic growth interested scholars in economic . But there are many different conclusions . Why there are so many different conclusions when we do positive tests on the fiscal expenditure and the economic growth? Because there is an important factor: the fiscal expenditure structure we don't account in. Fiscal expenditure structure has very important effect on economic growth . The different fiscal expenditure structure has different effect on economic growth. That is why we get different conclusions when we just do positive tests on the whole fiscal expenditure and economic growth . Studying the relation between the structure of fiscal expenditure and the economic growth will help us know more about the contribution of every categorized expenditure to the economic growth. And this will also help to improve the efficiency of every categorized fiscal expenditure, to optimize the expenditure structure, to collocate the fiscal expenditure more reasonably.There are six chapters in this dissertation. In the first chapter, I introduce the purpose , significance and construction of my dissertation . Chapter two is about the present condition of research in this problem both at home and abroad . I will review on the related literatures in two aspects: government function and the relationship between fiscal expenditure structure and economic growth . Chapter three is about the theoretic analysis of fiscal expenditure and economic growth . First the conception of the fiscal expenditure structure is defined. Then I categorize the fiscal structure according to the function of the expenditure,the use of the expenditure and the character of the expenditure. Last I analyze how fiscal expenditure effect the economic growth with IS-LM model which is improved to accommodate our country . Chapter four is about the common situation of fiscal expenditure in our country. The history of how the fiscal expenditure structure changed is introduced. And there are still some problems in our fiscal expenditure structure: the growth of fiscal expenditure is unreasonable; the percentage of expenditure in GDP is too variable ; the function structure is not reasonable . Chapter five is about the positive analysis of the fiscal expenditure structure and economic growth . First I introduce the C-D model and how I get the data . Then I analyze the relationship of the whole fiscal expenditure and economic growth and the relationship of the function structure and economic growth with data from 1952 to 2004 . Draw through the empirical model: economic construction expenditure,social culture and educational expenditure,administration expenditure,administration expenditure,defending expenditure,the rest expenditure and economic growth present positive correlation relation ; while coefficient of elasticity of administration expenditure and defending expenditure is very small. Chapter six is the conclusions and countermeasures to optimize the fiscal expenditure structure of our country . On the basis of the analysis made in other chapters I get the conclusions of this dissertation . Then according to the conclusions of this dissertation I give some countermeasures to optimize the fiscal expenditure structure .