A Study On The Impact Of Public Expenditure On Interregional Industrial Upgrading

With the rise of a new round of technological revolution,the "Industry 4.0" is going to sweep across the globe.The pace of emerging industry layout as well as traditional industrial transformation is accelerating.The comparative advantage of population bonus is a recession and the problems brought by extensive mode of economic growth are increasingly prominent.As a result,it is urgent to speed up the industrial transformation and upgrade and transform the mode of economic development.As an important means for the government to participate in the market economy,does the public expenditure policy affect industrial upgrading? In view of the imbalance of regional development in China,is there heterogeneity in the influence of public expenditure policies? The research in this paper is of great practical significance for China to realize industrial transformation and regional economic development.Based on the scale and structure of public expenditure,this paper defines industrial upgrading as the unity of quantitative change and qualitative change.This paper selects the ratio of added value of tertiary industry to GDP and the ratio of output value of high-tech industry to GDP to measure the quantitative and qualitative changes of industrial upgrading.Starting with the current situation of public expenditure and industrial upgrading,this paper analyzes the existing problems of public expenditure and industrial upgrading and then puts forward the relevant research hypotheses combined with the analysis of economic theory.In the part of empirical research,in order to study the overall impact of public expenditure on industrial upgrading and whether there are differences in the impact of public expenditure on industrial upgrading among regions,this paper establishes OLS model and quantile regression model.It is hoped that the impact of the scale and structure of public expenditure on industrial upgrading can be deeply analyzed through this method.It is concluded that public expenditure has a significant scale effect on the quantitative change of industrial upgrading and a structural effect on the qualitative change of industrial upgrading.From the point of view of specific public expenditure items,science and technology expenditure has played an important role in promoting the quantitative and qualitative changes of industrial upgrading.There is a significant heterogeneity in the education expenditure.There are obstacles to industrial upgrading in areas where the industrial level is relatively backward and in areas with higher industrial level,it is beneficial to promote industrial upgrading.Expenditurefor medical and health care,urban and rural community affairs and transportation plays a positive role in promoting the qualitative change of industrial upgrading.Based on the above research and conclusions,this paper puts forward policy recommendations from different aspects:(1)Promoting the reform of "release management and service" and improving the efficiency of public expenditure.(2)Optimizing the structure of public expenditure to guide industrial upgrading.Including: innovating the way of science and technology expenditure and strengthening the guidance of science and technology expenditure;allocating educational resources rationally and paying attention to education equity;optimizing the regional arrangement of medical and health expenditure and sharing pressure with enterprises;increasing expenditure on infrastructure and supervising the expenditure strictly.(3)Attaching importance to the mechanism of talent incentive and opening-up policy and establishing a virtuous cycle mechanism.