Study On Chinese Fiscal Expenditure's Impact On Manufacture Industry Upgrading

Changing the way of economic development, adjusting and optimizing the industrial structure has become the focus of the current economic development. And China as a manufacturing power country, optimize the adjustment of manufacturing structure is undoubtedly a very important practical significance. At the same time, the scale of fiscal expenditure and expenditure structure play a very important role in the adjustment of industrial structure. So it is very important to study the optimization and upgrading of the financial expenditure in the development of the times.First of all, this paper sorts out the theory of financial expenditure on the upgrading of the manufacturing industry, to lay the foundation for the follow-up study.Then reviews the relevant theory, public finance theory and the theory of industrial structure and analysis fiscal expenditure scale and the structure of fiscal expenditure in education expenditure, expenditure on science and technology, investment expenditure and administrative expenditure to the manufacturing industry upgrading mechanism. Finally, in this paper systematically and review previous studies based on,uses the empirical research method system examines the effects of China's fiscal expenditure on the manufacturing industry upgrading, decomposition method using the System GMM method and effect, using the panel data of 2007- 2011 national 31province(municipality directly under the central government, autonomous region),systematic analysis of the China's fiscal expenditure scale and structure of manufacturing optimization upgrading effect. The study found that the total expenditure for every increase of 1% will increase the manufacturing industry structure optimization level of 2.7% around, which in education and science and technology spending growth rate for every increase of 1%, can improve the manufacturing industry structure optimization level of 11.7% and 3.6%, accounting for fiscal expenditure on the upgrading of the structure of manufacturing industry of promoting effect of 14.3% and 9.5%; on the contrary, the financial investment expenditure and administrative expenditure growth rates were increased by 1% will lead to manufacturing industry structure optimization level decreased by 6.6% and3.3%, these negative effects will be offset to the fiscal expenditure on the upgrading of the manufacturing industry structure promotion effect of 8.5% and 6.2%. Further analysis found that education expenditure on manufacturing industry structure adjustment and upgrading with linear increasing promotion effect, namely with the increase in the level of manufacturing industry structure optimization, education expenditure on manufacturing optimization the positive effect of the stronger;expenditure on science and technology for manufacturing industry structural adjustment is a "U" type curve; investment spending on manufacturing optimization and upgrading of the negative effects is inverted "U" type curve; administrative expenses on manufacturing industry structure optimization of the negative effects with the manufacturing industry structure optimization to improve the level of increasing.This paper divides the system into the estimation of GMM samples were tested,the above estimation results are robust, with the policy implications of the research conclusion: improving the level of educational expenditure and expenditure of science and technology; reducing the level of investment expenditure and administrative expenditure reasonably; improving the efficiency of fiscal expenditure;according to the structure of the manufacturing industry in different areas, allocating the structure of fiscal expenditure rationally.