2009•Zhongnan Cai-jing Daxue xuebaoRequires access

Empirical Study of Administration Expenditure Transnormal Growth in China

Jiang Ke-zhong

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Abstract

Based on 1978~2006 years data in China,this article uses cointegration theory and error correction model to analyze the relationship between the administration expenditure growth and the economy development,the urbanization level,the degree of openness,and the price level.The result indicates:In the long run,the proportion of the administration expenditure to the gross fiscal expenditure has positive effect on the urbanization level and the price level;has negative effect on the per capita GDP and the degree of openness.In the short run,the fluctuation of the proportion of the administration expenditure to the gross fiscal expenditure mainly is affected by the price level.

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What this paper is about

Based on 1978~2006 years data in China,this article uses cointegration theory and error correction model to analyze the relationship between the administration expenditure growth and the economy development,the urbanization level,the degree of openness,and the price level.The result indicates:In the long run,the proportion of the administration expenditure to the gross fiscal expenditure has positive effect on the urbanization level and the price level;has negative effect on the per capita GDP and the degree of openness.In the short run,the fluctuation of the proportion of the administration expenditure to the gross fiscal expenditure mainly is affected by the price level.

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Available abstract

Based on 1978~2006 years data in China,this article uses cointegration theory and error correction model to analyze the relationship between the administration expenditure growth and the economy development,the urbanization level,the degree of openness,and the price level.The result indicates:In the long run,the proportion of the administration expenditure to the gross fiscal expenditure has positive effect on the urbanization level and the price level;has negative effect on the per capita GDP and the degree of openness.In the short run,the fluctuation of the proportion of the administration expenditure to the gross fiscal expenditure mainly is affected by the price level.

Key concepts: Economics, Cointegration, Openness to experience, Error correction model, Per capita, China, Urbanization, Price level

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