The Fiscal Expenditure and Economic Growth in the West Areas——The empirical analysis based on provincial-level panel date unit root test,cointegration test and granger causality test

This paper makes an Empirical test between government expenditure and economic growth,and uses the western areas provincial panel data from 1996 to 2007.The results suggest that the government expenditure and consumption both have positive effect on economic growth of west area.However,the fiscal expenditure has Crowding Out Effect on the consumption.We find that the Wagner's Law is true in west areas,and as the economic growth,the government expenditure is also expending.