Positive Analysis On Relationship Between Economic Growth And Public Expenditure Scale&Structure

Public expenditure is an important tool to achieve the government function, and economic growth is always the focus of the governments’attention at all levels. In contemporary market economy conditions, the public expenditure as one of significant means of government macrocosmic adjustments, plays quite vital role in economic growth.This paper, Based on the related theories at home and abroad, with Econometrics methods such as cointegration theory, non-stationary time series model, using the related data of Jiangxi province from1991to2010, at the view of public expenditure scale and structure, analyzes the relationship between public expenditure and economic growth of Jiangxi province. The study found that the increase of public expenditure scale in Jiangxi province has promote role for economic growth, and the the optimal relative scale for economic growth of Jiangxi is20.79%, but the data of1991-2010is far lower than that, so the economic regulation and control though public expenditure of Jiangxi is not enough; Social security expenditure, science and technology spending and education spending has significantly positive effect in economic growth of Jiangxi province, but the administrative expenditure play a negative role on economic growth. Therefore, we need to further expand the scale of jiangxi public expenditure, strengthen the government’s macroeconomic regulation and control function, adjust and optimize public expenditure structure, focus on social security, science and technology, education and other social public spending, at the same time, reduce administration cost, increase the service efficiency of funds, thus promoting the economic growth of Jiangxi province.