Research On The Relationship Between Fiscal Expenditure And Economic Growth In Our Country

Fiscal expenditure is one of important means for government to get involved in economy. Economic growth is the core goal of economic policy in most countries. Western economic theory believes that the relationship between fiscal expenditure and economic growth is mutual promotion, but empirical analysis shows a lot of different results. At present, as the world financial crisis is becoming increasingly fierce, the fiscal policy of four trillion investment plan is expected timely in our country, and maintaining an appropriate rapid economic growth becomes the emphasis of economic work in 2009. Therefore, it is significant to research the relationship between fiscal expenditure and economic growth.This paper comes to further study the relationship between the government expenditure and economic growth from two respects of the theoretical and empirical study. The theoretical analysis indicates fiscal expenditure can promote economic growth directly or indirectly, and the structure of expenditure also can affect economic growth. The empirical study indicates, the total quantity of our country expenditure can obviously promote the economic growth, the effect of which is between FDI and net import; divided by expenditure function, economic construction expenses have remarkable positive acting on to GDP with one year to lag behind;and on the contrary, the social, cultural, educational development expenses and other expenses for large-caliber including nation defenses and the other expenses suggest that there is no significant interaction with economic growth; further, the administrative expenses may even have the remarkable negative effect on economic growth; moreover, the educational development, scientific research, culture and healthy expenses and social security expenditure from the social, cultural and educational development expenses don't have positive acting on to economic growth significantly. Finally, the corresponding suggestions from the above conclusions proposed, are made to optimize the structure of china's expenditure.