An Empirical Study on How Public Expenditure Accelerates China's Transformation of Its Economic Growth Mode——Based on the Empirical Evidence from Dynamic Panel Data

This paper uses the Frontier Production Function to estimate the variant of the TFP of 28 provinces of China.Then by using China's provincial panel data from 1978 to 2006,the paper performs an empirical analysis on the dynamic effect of public expenditure on Total Factor Productivity(TFP).The result shows that the public expenditure has a positive correlation with the TFP.It has a positive effect on China's transformation of its economic growth mode.And the effects of public expenditure on the TFP are varied in different parts of China.