Empirical Study On The Impact Of Government Expenditure Of Social Security On Economic Growth

Government expenditure on social security can promote economic growth, since it expands domestic demand, promotes consumption, takes the social fairness and efficiency into account, maintains social stability, as well as promotes the rational flow of labor. The positive correlation between the growth rate of government expenditure on social security and that of total economic suggests that government expenditure on social security is promoted to economic growth, while financial input to social security is an important source of social security funds, government expenditure on social security is necessarily to promote economic growth.Basing on the Cobb-Douglas models, the author establishes metrological model to illustrating how government expenditure on social security influents economic growth, by analyzing 10 years of panel data of 30 provincial-level units in our country, and finally finds that government expenditure on social security stimulates the economy growth obviously. Besides, social security spending influences economic growth much more than other financial expenditures do, however, there are many problems in finance social security spending in our country.The main idea of this study is based on existing research, first study the mechanism of influence government expenditure on social security on economic growth, Then combined with the reality in China, measured test. From the regression of the results, government expenditure on social security can promote economic growth. Government expenditure affect consumption, investment, human capital accumulation and then influence the economy. Mechanism of these effects constitute the main innovation of this article.Collecting large amounts of data, the analysis of the phenomenon of social security system and Government Expenditure on Social security in China leads to the conclusion that the overall level of Government Expenditure on Social security in our country is low, and there is a big gap between our country and developed countries, and some developing countries as well.On this basis, we have proposed to adjust expenditure structure of finance social security, increase investment of social security, as well as the expenditure of rural social security, with the hope of refining policy.