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The Spatial Econometrical Analysis of Composition of Local Public Expenditure and Region Economic Growth in China

Ke Yu

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Abstract

This paper assesses the effects of public expenditure composition on economic growth in a sample of 31 regions in the mainland of China between 1995 and 2005 by the method of spatial econometric.The conclusions show that the productive operation expenditure,enterprise transformation expenditure and government expenditure have significantly positive effects on region economic growth,while the agricultural expenditure has significantly negative effects,and the others have insignificantly effects.

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This paper assesses the effects of public expenditure composition on economic growth in a sample of 31 regions in the mainland of China between 1995 and 2005 by the method of spatial econometric.The conclusions show that the productive operation expenditure,enterprise transformation expenditure and government expenditure have significantly positive effects on region economic growth,while the agricultural expenditure has significantly negative effects,and the others have insignificantly effects.

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Available abstract

This paper assesses the effects of public expenditure composition on economic growth in a sample of 31 regions in the mainland of China between 1995 and 2005 by the method of spatial econometric.The conclusions show that the productive operation expenditure,enterprise transformation expenditure and government expenditure have significantly positive effects on region economic growth,while the agricultural expenditure has significantly negative effects,and the others have insignificantly effects.

Key concepts: Government expenditure, Economics, Public expenditure, Mainland China, China, Sample (material), Composition (language), Agriculture

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