Research Of The Fiscal Expenditure Structure And Economic Growth’s Impact On Poverty

Poverty is not only one common economic phenomenon, but also one complicated social problem. Human beings have been long struggling against poverty with the aim to relieve it. China government has achieved remarkable accomplishments in dealing with poverty with the economic growth and Pro-poor policies in the past over thirty years. However, china has still been confronted with the trouble of poverty. Researches in the field of poverty are of great significance in China’s process of fully constructing harmonious,prosperous and fair society, which make more sense considering the effects of economic growth and the structure of fiscal expenditures on poverty. On the one hand, for the foundation built by the rapid economic growth, now it is possible for China to get rid of poverty; on the other hand, Government’s pro-poor policies and local government investment in public expenditure have a very significant impact on poverty. This article is based on above consideration, on the background of high-speed economic growth and pro-poor policies, focusing on the effects of fiscal expenditures structure on the poverty. This thesis used the microeconomic data about poor counties in Anhui province to conduct a regression analysis and further empirical analysis based on theoretical analysis. The conclusions are below: firstexpenditures of medic-care and rural-urban social affairs are helpful to make poverty diminished with one percent increment in expenditures of rural-urban social affairs and the decrease of the poor population by0.29%; but the percentage of poor population will only drop by about0.64%for the same increment of expenditures of medic-care. However, education and social security expenditures do not contribute to getting the poor population dropped. Second, we studied on the basis of the above considerations of economic growth factors, finding that even considering the factors of economic growth, it does not change our above conclusion;Third, we also found that the high cost of government administration.On the basis of the conclusions of this study, we propose relevant policy recommendations, namely the local government during the fight against poverty, it is necessary to pay attention to the government’s own administrative and optimization of fiscal expenditure structure.