Research On The Relationship Between Economic Growth And Government Revenue In China

Since the reform and opening up,China has made great achievements in economic development,the economic output and economic growth hit the record highs by years.In2010, China’s total economic output (GDP) surpassed Japan, ranking second in the world.In recent years, China’s economic growth slowed down. In,2013, China’s GDP is56884.521billion yuan, an increase of9.5%over the previous year.China’s good economic growth provided the ample sources for the government to organize fiscal revenue.In2013,the national government revenue is12914.3billion yuan,an increase of1188.9billion yuan over the previous year.The scale of government revenue continues to expand,and it provided adequate funding for the government to perform its functions.Fiance have played a full role in macroeconomic regulation,so as to further promote the healthy development of the economy.Revenue is closely related to economic growth, the total economic,growth rate,and structure determine the size,growth rate and the quality of fiscal revenue. While revenue perform its functions by the government,participate in social reproduction and resource allocation to promote or inhibit the economy. So it is very important to study the coordination of the government revenue and economic growth.Based on the existing and domestic literature review,this paper firstly made a detailed review and analysis on national and local government revenue tendency and economic development trend,then found that China’s fiscal revenue grew over the economy rigidly and explore this phenomenon. This paper made a international comparison to determine that the relationship between China’s government revenue and economic growth was in a reasonable range.Then,I built the econometric model,and used the provincial panel data model in order to analysis the difference between the regions in,and studied the influence of industrial structure of local government revenue.finally,I tried to dig the reasons which made the regional differences,then made some recommendations.