Study On The Relationship Between China’s Urbanization And Fiscal Expenditure Structure

The rapid development of urbanization in china under the background of the reform in economic system has attracted the attention of the society since 1990s. Domestic and foreign experts and scholars generally believe that, the development of urbanization in China will become a powerful engine to expand domestic demand, and even affect the economic development of the world far-reachingly. The fiscal expenditure structure of our country embodies the will of government and policy orientation, grasping the steering wheel of China’s economic and social development. Therefore, how to effectively adjust the fiscal expenditure structure of our country to promote urbanization development will become an important problem.After analyzing domestic and foreign literatures about the development of urbanization and the state fiscal expenditure structure, this paper briefly introduces the development of urbanization in China. This paper insists that the level of urbanization should not only be measured by simply the ratio of population urbanization or land urbanization but the quality of urbanization. Then this paper concludes the changes and characteristics of state fiscal expenditure structure of China and analyses the relationship between urbanization and state fiscal expenditure structure.Through summarizing literatures about the quality of urbanization, this paper constructs a system of evaluating the quality of urbanization, including 17 indexes about economic development, social development, space development, urbanization efficiency, coordination between urban and rural areas. This paper integrates 17 indexes into one comprehensive index through Principal components analysis. Then this paper selects the proportion of technology expenditure, education expenditure, health expenditure and social security expenditure as variables to study the relationship between the development of China’s urbanization and the fiscal expenditure structure by the method of multiple linear regression.Finally, through empirical analysis, this paper finds that increasing the proportion of technology, health and social security expenditure can improve the level of urbanization. Combined with the related analysis, this paper makes some policy suggestions.