Abstract
This paper quantitatively measures the quality of economic development in 30 provinces in China from 2007 to 2017 by constructing a quality of economic development comprehensive evaluation index system. Based on this, a systematic GMM empirical analysis model is used to examine the effect of fiscal expenditure structure on the quality of economic development. The research results show that, at the macro level, all types of fiscal expenditures have a positive effect on the quality of economic development, and they are ranked from large to small in terms of environmental protection expenditures, social security and employment expenditures, science, education, cultural and health expenditures, economic construction expenditures, general public service expenditure. At the meso level, science, education, cultural and health expenditures, social security and employment expenditures, and economic construction expenditures in the eastern, central, and western regions all have a positive impact on the quality of economic development. There is obvious regional heterogeneity in the impact of general public service expenditure and environmental protection expenditure on the quality of economic development. Suggestions are put forward to optimize the structure of China’s fiscal expenditure to enable high-quality economic development.
Highlights
This paper quantitatively measures the quality of economic development in 30 provinces in China from 2007 to 2017 by constructing a quality of economic development comprehensive evaluation index system
A systematic GMM empirical analysis model is used to examine the effect of fiscal expenditure structure on the quality of economic development
The research results show that, at the macro level, all types of fiscal expenditures have a positive effect on the quality of economic development, and they are ranked from large to small in terms of environmental protection expenditures, social security and employment expenditures, science, education, cultural and health expenditures, economic construction expenditures, general public service expenditure
Summary
Since the reform and opening up, China’s economic management system has undergone a fundamental change from “planning” to “marketing”, government functions have changed from advocating “construction finance” to “public finance” to “people’s livelihood finance”, and the economy has been adjusted from a high-speed development stage to a gear-up shift phase All of these are accompanied by the changing structure of fiscal expenditure. This paper will construct a dynamic panel data model and use SYS-GMM research methods to empirically examine the relationship between fiscal expenditure structure and the quality of economic development at the macro level (national) level and the middle level (east region, central region, and western region), provide corresponding policy recommendations to optimize the structure of China’s fiscal expenditure and enable high-quality economic development. Construction and Measurement of Comprehensive Evaluation Index System for Economic Development Quality
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