Co-integration and Error Correction Model Analysis on Fiscal Expenditure of Zhejiang

Based on co-integration and error correction model(ECM),the fiscal expenditure's scale and structure of Zhejiang and their economic effects were studied.The results showed that the scale of the fiscal expenditure is relatively low.The regression showed that:the capital construction expenditure,expenditure for supporting agriculture,and expense of administration are negatively correlated to GDP growth;and the fund for potentiality exploration and technical innovation of enterprise,three types of expenditure in science and technology,and expenditure of culture,education,science and public health are positively correlated to GDP growth.