Research on Fiscal Expenditure Structure and High-Quality Economic Development: An Empirical Study Based on Panel Data from Chinese Provinces from 2007 to 2017
- 1 School of Economics, Jinan University, Guangzhou, China
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.
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