Empirical Research On The Relationship Of Financial Expenditure And Economic Henan Province

Economic growth is the eternal theme of the development in various countries and places.since therise of the Keynes School,the realation of fiscal expenditure and economic growth whether in theory or inpractice is one of the key issues in the economics research.In twentieth Century seven times,the rise ofendogenous growth theory to study the relationship between fiscal expenditure and economic growth hasopened up a new way, explains the moderate scale of fiscal expenditure and reasonable financialexpenditure structure can promote economic growth inside unripe. It is in this background, this paperstands in Henan province this relatively independent of the level of government perspective, to the analysisof fiscal expenditure of Henan province and Henan province economy growth relation. Not only can furtherdeepen the understanding of the provincial finance activities impact on the economy, at the same time, alsotry to find finance expenditure of Henan province current situation problems and policy recommendationsto the relevant government departments, provide a basis for policy formulation.This paper uses theoryanalysis and empirical analysis methods, theoretical foundation is a barrow with government expenditureeconomic endogenous growth model, the empirical analysis is the main tool of basic OLS method,integration theory, cointegration theory, and based on the unstructured VAR model for impulse responseanalysis. The scale and structure of fiscal expenditure affect regional economic growth is the focus of thisarticle.Specifically, this paper is divided into six parts, the first part is the introduction part, this partsummarizes and analyzes the current situation in this field, in order to establish this article analyzes thestarting point and focus of research; the second part is the part of theoretical analysis,which is designed forthe chapters that follow do theoretical foundation, the Keynes school IS—LM model as the scale offinancial expenditure on economic growth between theoretical guidelines, and endogenous growth theory isused as the structure of fiscal expenditure and economic growth relation theory guide; third part by usingthe basic method of data analysis from the trend and the proportion of fiscal expenditure of Henan provinceand Henan province economy growth, and for the back up econometric model to provide data support; thefourth part using the measurement by means of the analysis of Henan Province, the scale of fiscal expenditure and economic growth in Henan province and the industrial structure relationship, and thesimple conclusion; in the fifth part of the scale of financial expenditure under certain conditions with VARmodel is the core of financial expenditure structure and economic growth to the measurement ofrelationship, and the using the pulse response function method to deepen the understanding of the structureof financial expenditure; the last part is to The abstract empirical analysis result as the basis, from theHenan provincial financial expenditure scale and structure two respects tries to put forward the relevantpolicy recommendations.