Abstract

<p>This paper constructs an index system to evaluate economic growth quality. After taking into account the spatial correlation, the impact of public expenditure on economic growth quality is investigates by using panel data from a Chinese province during 2007 and 2014. In this analysis, different levels of economic growth quality and fiscal expenditure are considered. The results reveal that (1) Economic growth quality should be measured not only from scale but also from structure, performance and coordination. (2) There is agglomeration effect because local government fiscal expenditure greatly promotes local region economic growth, and this rule not only embodies in scale, but also in performance and coordination. (3) The spatial spillover effect of neighbouring government fiscal expenditure on local economic growth quality cannot be ignored, and different fiscal expenditure represents different results. There is complex spatial correlation among governments and corporation relationship among regions is very important. Finally, some policies about fiscal exnpenditure and economic development are proposed.</p>

Highlights

  • For more than 30 years of Chinese economic reform, great achievements have been made in economic growth

  • The unity of quality and efficiency is the intrinsic request of economic development (Wei, 2009)

  • The 8th National Congress of the Communist Party of China reported “we should take accelerating the change of the growth model as a major task and ensure that development is based on improved quality and performance"

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Summary

Introduction

For more than 30 years of Chinese economic reform, great achievements have been made in economic growth. The research of Luo (2014) was about the level of public service supply from basic construction, education, administration, social security and health care. It is a necessary requirement to study the influence mechanism of local government fiscal expenditure on regional economic development and estimate its size using spatial method. The contribution of this paper may be as follows: (1) Choosing an index system to measure economic growth quality from scale, structural performance and coordination; (2) Studying the aggregation and spillover effects of local government expenditure on economic growth quality with spatial method; (3) Adjusting fiscal expenditure to actual expenditure by price index respectively

Measurement of Economic Growth Quality
Directing Resource Flow by the Guidance Function of Fiscal Expenditure
Establishment of Empirical Models
Model Estimation and Discussion
Influence of Different Fiscal Expenditure on Economic Growth Quality
Conclusion and Recommendation

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