The Impacts Of Public Expenditure On Urbanization In China

Urbanization is the obligatory way to modernization, the largest factor to raise domestic demand potential, the important motivation to economic development, as well as an important livelihood project. Since the implement of the National New Urbanization Planning(2014-2020), the urbanization construction of China has achieved a tremendous progress. However, the transition of rural population still remains at a low speed, the quality of urbanization still remains at a low level. The government fiscal spending plays an important role in the the process of urbanization in China. Therefore, how to increase public financial investment, to optimize the allocation of public finance, to make promote f urbanization construction healthily and coordinately have become the top concern of government and academic circles.Based on the review of research refers to urbanization and public fiscal expenditure, the assay build up the measure index of the urbanization and the public financial expenditure. Depending on the relevant statistical data, the assay makes a descriptive analysis of urbanization construction speed and its coordination degree, as well as the scale of public financial expenditure and its transformation degree. Then, the assay carries on an empirical analysis and inspection of the influence of the public finance expenditure to urbanization construction in China. The conclusion is as followed.(1)In terms of population urbanization rate, the urbanization construction of China has realized a high speed development, but when compared with the world average level, we still have a long way to go. As far as the coordination degree of urbanization, the contradiction between human and land using in our country is quite prominent, the population urbanization process falls behind the space urbanization significantly.(2)Since the Chinese economic reform, the absolute scale of public finance expenditure has achieved a steady rise. However, the relative scale falls behind the developed countries largely. In terms of the transformation degree of public expenditure, the national transition degree keeps rising, but comes up with an bottleneck in recent years. Although transformation degree varies from province to province, it appears to be a "eastern, central, northeast and western" diminishing cascade.(3)Public spending is the granger cause of urbanization; these two get a significant long-term equilibrium relationship. The scale of the expenditure makes a long-term stable and positive effect to population urbanization. The transformation of public spending owns a positive effect on the coordination of urbanization. When the financial resources put into the public service, the gap between the population urbanization and space urbanization will be released.(4)Suggestions to optimize the use of public finances, in order to promote the urbanization healthily and coordinately: keeping the balance of government duties and finance, enlarging the channels of public finance razing; accelerating the transformation of public expenditure, promoting the basic public services equalization; improving the efficient of public funds using; reform the assessment system of local government; promoting the reform of the household registration system reform, strengthen the mechanism of "voting by feet".