Local Government Expenditures,Productivity Improvement and Regional Growth:Empirical Evidence from the Panel Data of Chinese Regions

The empirical analysis uses panel data and stochastic coefficient model,and the results show that the impro- ving effects of government expenditures are different in three regions,but the single factor productivity and total factor productivity in three regions have similar trend of change.The results illustrate the proper expansion of government ex- penditures will raise capital productivity,and the adjustment of its structure will promote total factor productivity,but from the eastern to the western the improving effects of government expenditures on the capital productivity and total fac- tor productivity slowly weaken,and the labor productivity in the central and western regions wasn't obviously raised and in eastern region was higher in the early 1990s,but after that the labor productivity in the eastern was decreased sub- stantially.