Size of Government Expenditure,Economic Fluctuation and Economic Growth——An Empirical Analysis Based on the Provincial Panel Data

Based on Barro's theory on government size and economic growth,the authors introduced economic fluctuation to reflect the intervention of government expenditure size in economic activities,and tested the impacts of both government expenditure size and economic fluctuation on economic growth with the panel data of 28 Chinese provinces,municipalities and autonomous regions from 1979 to 2008.The findings of empirical research show that Chinese local government expenditure size and economic fluctuation both have negative effects on regional economic growth.Compared with the government expenditure size,the negative impact of economic fluctuation on regional economic growth is greater.So while pursuing rapid economic growth,the government should focus on the stability of economic growth.