Spatial Econometric Analysis Of The Relationship Between China Local Fiscal Expenditure And Economic Growth

With the gradual development of the reform in finance system, local governments ha-ve a relatively independent financial, local fiscal expenditure has an increasing effect onthe local economic growth, how to optimize the fiscal expenditure size and the composit-ion of fiscal expenditure to promote the local economic growth has an important meaning,the theory and empirical studies in this paper is helpful for us to understand it.This article analyses the fiscal expenditure size and the composition of fiscal expendit-ure on economic growth role from the two mainly aspects: one is from the aspect of theory,develops an optimal analytical framework which links the fiscal expenditure size and thecomposition of fiscal expenditure with economic growth, finds the optimal proportion ofthe fiscal expenditure size and the composition of fiscal expenditure on economy growth,has a theory basis on the optimization of the fiscal expenditure size and the composition offiscal expenditure. This article analyses the scale and structure of local fiscal expenditureon economic growth role from the two mainly aspects: one is from the aspect of theory,develops a optimal analytical framework which links the fiscal expenditure size and thecomposition of fiscal expenditure with economic growth, finds the optimal proportion ofthe fiscal expenditure size and the composition of fiscal expenditure on economy growth,has a theory basis on the optimization of the fiscal expenditure size and the composition offiscal expenditure. Two is from the aspect of the empirical analysis, analyzes the relation-ship between the fiscal expenditure size and the composition of fiscal expenditure andeconomic growth respectively, considering the local economy has the spillover effect, souses the spatial econometric model for the empirical analysis research in this paper. Inchapter4of this paper, according to study the relationship between the fiscal expendituresize and economic growth, we can draw the consequence: in recent years the fiscal expend-ture size has a negative correlation with economic growth, the expanding of the fiscalexpenditure size is bad for the local economic growth, at the same time, the tax levels arepositively correlated with economic growth; In the study of the relationship between thecomposition of fiscal expenditure and economic growth, the results show that: In recent years, the proportion of the administrative management expenditure、the social welfare、culture and education expenditure、the economic construction expenditure are positivelycorrelated with economic growth, and the proportion of the defense spending is negativecorrelated with economic growth, among them, the proportion of the economic construct-ion expenditure and the social welfare、culture and education expenditure have the higherimpact on economic growth, the proportion of defense spending has the lower influence oneconomic growth. Finally, according to the empirical analysis results of the fiscalexpenditure size and the composition of fiscal expenditure with economic growth, thearticle gives some relevant policy suggestions.