In the process of economic growth,government spending has been playing an important role in financial expenditure. Appropriate structure of government expenditure is of great significance to the allocation of resources and to promote stable economic growth, but the disorders of fiscal expenditure structure will hinder economic development. Therefore, it is necessary to analysis the relationship between the structure of fiscal spending and economics growth in order to optimize the structure of fiscal expenditure.The main content of this paper is divided into four parts. Chapter one first analyses of the importance of adjusting and optimizing the structure of fiscal expenditure, then reviews the theory between fiscal expenditure structure and economic growth, and shows the purpose of this study and its significance. Chapter two puts the more realistic hypothesis "uncertain limited life" into the theoretical model of economic growth and then dynamic analyses the impacts of government spending structure on economic growth, which has a more solid foundation the previous models. Chapter three selects suitable variables and diagnosis model according to the conclusion form theoretical model and China's actual situation, then use the SVAR method, which is been widespread used in policy research and has significance economic meaning, to analysis China government expenditure structure and economic growth between the year of 1978 and 2005.The final chapter is conclusion, has made a brief summary for the research of this paper, at the same time has made some recommendations about how to improve the structure of China government spending. |