Study On The Influence Of Fiscal Expenditure Opening To The Outside World On Total Factor Productivity In China

Reviewing the development process of China's economic reform and opening up,we can find that the government's leading role in the economy and opening up to the outside world are two prominent features of China's transitional growth model,which constitute the core of China's economic growth model for more than four decades.Traditional Keynesians believe that the government's fiscal expenditure has multiplier effect on the promotion of economic growth.With the rapid economic growth,the scale of fiscal expenditure in China continues to expand,and the scale of local fiscal expenditure also gradually rises.Local governments mainly achieve their macroeconomic goals by adjusting the scale and structure of fiscal expenditure,while the opening up to the outside world provides sustained impetus for rapid economic development and institutional transformation.However,with the transformation,upgrading and deep adjustment of the global industrial structure,the growth rate of China's economy has gradually slowed down after a long period of rapid growth.Many economists believe that the improvement of total factor productivity is conducive to the long-term sustainable development of the economy,and the report of the 19th national congress of the communist party of China(CPC)explicitly proposes to improve the total factor productivity for the first time,so as to enhance market vitality and cultivate new drivers of economic growth.Therefore,from the above perspective,this paper comprehensively discusses the impact of fiscal expenditure and opening-up on total factor productivity.which is of certain signifi cance to optimize the economic development structure and improve the quality of China's economic growth.This article in pointed out that the fiscal expenditure from the aspects of theory and opening to the outside world by acting on the investment direction and technology spillovers,human capital and other ways to affect the total factor productivity,on the basis of calculation and analysis by applying the method of DEA data envelopment 30 provinces and cities in China(not including Tibet)1998-2015 total factor productivity,found that after 2008,China's total factor productivity decreased obviously.Then the system GMM estimation method is adopted to the panel data to carry on the empirical analysis,found that fiscal expenditure scale and the opening to the outside world has a positive effect on the total factor productivity,this paragraph of time opening to the outside world in 2007-2015 to the total factor productivity effect is more prominent,and the cross terms of financial expenditure scale and the opening to the outside coefficient is positive,that this time both have alternative to the influence of total factor productivity.In itemized fiscal expenditure,the structure of fiscal expenditure is divided into:general public expenditure.agriculture,forestry and water affairs,education and employment expenditure,social security expenditure.The empirical analysis shows that the general public expenditure and education expenditure obviously contribute to the improvement of total factor productivity,while the agricultural expenditure and social security expenditure have limited effects.Finally,based on the analysis of the status quo and empirical results,this paper puts forward relevant Suggestions on the rational formulation of the policy of opening up and fiscal expenditure,optimization of fiscal expenditure structure and promotion of economic development.