Fiscal Expenditure, Technology Selection And Economic Performance

China’s economic has created a surprising development since the reforming and openingup. Undoubtedly, technology progress played an important role in the process. Therefore, it ismeaningful to do the researchon technology choice since China’s reforming and opening.Factors affecting the technology choice are complex. Considering government behaviorplaying important role in China’s development, the essay selected the behavior of governmentspending as the research starting point on the basis of previous studies. Specifically, the paperanalyzed the influences on technology choice from different fiscal expenditure policy, and italso summarized the characteristics of the officers and policies in the developing countries.Basing on the analysis above,the essay described how the advanced technologies in higherequipped enterprises affected the lower equipped enterprise under the advanced technologypromotion policies. The easy also sorted out the mechanism of how the technology choiceunder the effect from fiscal expenditure policies influenced the economic performance.In order to make the research clearer, we used the provincial panel data such as technologyselection index, expenditure index, inputs and outputs related data to estimate the total factorproductivity, technological progress index and technical efficiency index with the help of DEAMalquest index. According to the results of error correction model, there was a causalrelationship between the fiscal expenditure index and the technology choice. So did theindividual technology choices and economic performance. It was shown that the promotioneffect formtechnology choice under expenditure intervention to economic performanceis notsignificant, and some sample even showed the technology choice under expenditureintervention hindered the progress of economic performance. The empirical results showed thatour technology choices be greatly affected by the government, and this kind of technologychoicewas not conducive to improve economic performance.According to the results of empirical and theoretical analysis, the essay gave some adviceabout factor market development, financial supervision system and the official promotionmechanism at the end of the article.