A Study On The Growth Effect Of Fiscal Expenditure Scale And Its Structure

Economic growth has been closely linked to the improvement of the comprehensive strength of a country and has always been the most important subject of economic research.According to different national conditions,the target of the growth rate and the control means of governments are also different.In the modern market economy,the Chinese economy want to adapt to the new normal and achieve medium and high speed growth.Fiscal policy is the most operational policy tools,and fiscal expenditure is one of the important means of implementing fiscal policy,not only to maintain social order and fair,also has an important impact on economic growth.In the context of the market mechanism,the government functions are changing,and correspondingly,the size and structure of fiscal expenditure should be adjusted to adapt to change.If the fiscal expenditure is too large or too small,will affect the economic growth rate.The proportion of intemal structure of fiscal expenditure structure is also important for economic growth.At present,China’s financial expenditure scale and structure of a lot of problems,the need to use scientific methods for overall planning.Therefore,having a deep understanding of the effect of fiscal expenditure growth has a strong theoretical and practical significance.This paper analyzes the influence of fiscal expenditure on economic growth,and analyzes the changing trend of fiscal expenditure scale and fiscal expenditure structure from the provincial data of China from 1997 to 2014.And then we build the panel data model to study the impact of fiscal expenditure scale and structure on economic growth.In addition,the contribution rate of each explanatory variable is measured by the decomposition method based on the regression equation.The results show that thcre is a significant positive correlation between the size of fiscal expenditure and economic growth.Economic expenditure,science and education expenditure and social security expenditure are significantly negatively correlated with economic growth.Administrative expenditure is positively correlated with economic growth.Contribution rate results show that,like factor investment and technological progress,the fiscal policy of the growth effect can not be ignored,improving the fiscal policy,maintaining capital investment and promoting technological progress is the basic premise to achieve high-speed economic growth.Finally,according to the empirical results,the paper puts forward the conclusion and gives the relevant policy suggestions.