The Effect Of Adjustment Of Public Expenditure Structure On Economic Growth

In these decades,China has been one of the world's fastest growing economic entity owing to the maturation of socialistic market economic system and a in-depth profoundness of Reform and Opening,during which the governmental public finance expenditure plays the role of pivot in macro-regulation to perfecting infrastructure construction,promoting health-medical and educational system reformation and coping foreign economic impacts,thus maintaining a steady economic growth.However,Chinese public expenditure is facing unprecedented challenges in the 'new normalcy',on the one hand,the tax,which is the main source of public expenditure,is limited by the slowing economic growth rate and the policy context of structural tax reduction.On the other hand,the contemporary supply-side reformation,demanding a continuous financial supplement,yearns for a more reliable public expenditure.In the aforementioned background,during the process of regulating governmental public expenditure,which serves as a economic stabilizer and public service apparatus,it is a critical and researchable matter that how the public expenditure should be adjusted to put limited budget to a more efficient and effective usage.Through data collection and processing of public expenditure and economic growth records about 31 provinces,autonomous regions,and municipalities directly under the central government(with the exception of Hong Kong,Macao and Taiwan)between year 1995 to 2015,we mainly discussed the feasibility of a public expenditure structural regulative method that could stimulate economic growth effectively in a fixed expenditure amount,and whether this effect would be influenced by different level of income.We revealed that significant economic growth would take place when percentage of social expenditure was raised in exchange of decreasing public investment expenditure,general public service expenditure or defense and public safe expenditure(other expenditure included,similarly hereinafter),or public investment expenditure was raised in exchange of decreasing general public service expenditure or defense and public safe expenditure.Accounting income level,the heterogeneity of itself would lead to opposite effects on the economic growth variation induced by public expenditure structural regulation.We quartered this thesis,in the first part,the research background and subject significance was illustrated with a briefing of contemporary literature.The second part will depict the collection and processing of dataset,with graphic and statistical description.In the third part,we would introduce the economic model applied,and the empirical results which will be presented in two sections,by whether the income level was took into consideration.The underlying mechanism of differentialized empirical results would be unveiled in the last part,with respective policy suggestions.