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Productive Government Expenditure and Economic Growth

Author: ShiZuo
Tutor: WeiFeng
School: Chongqing University
Course: Industrial Economics
Keywords: Government productive expenditure Economic growth Labor supply
CLC: F124;F224
Type: Master's thesis
Year: 2011
Downloads: 47
Quote: 0
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Abstract


Government productive expenditure as part of public spending, to guide private capital investment, to improve the level of labor supply, and promote long-term economic growth has an important role. China's long-term economic growth depends on the labor supply and transfer of rural surplus labor force, but after entering the 21st century, the social aging population structure has become increasingly serious China is about to bid farewell to the unlimited supply of labor in the state. And development of the world experience has proven, cheap labor supply is not a long-term determinants of economic growth. How, in the context of a stable fiscal policy, government productive expenditure, improve the level of human capital and the promotion of labor supply, in order to achieve long-term economic growth, both theoretical issues is very real practical problems. First, according to economic theory should the reality constantly close to this line of thought, the expansion of the original endogenous labor supply perspective productive government spending and economic growth theory model to explore and expand the analytical framework of productive government spending on The level of labor supply and economic growth mechanism, determine the optimal scale of production expenditures, the optimal tax rate and steady-state labor supply level; followed, respectively, from the structure and size of the regional panel data and time series data of the National two The angle has to verify the conclusions of the theoretical analysis of the relationship between the scale of productive government spending, labor supply and economic growth, adding answered structure of productive government spending as well as productive expenditure and consumer expenditure ratios exist for economic growth what implications. Finally, based on the conclusion, combined with the reality of China's economic policy proposals given the size and structure of government productive expenditure. The study concluded that: (1) the increase in government production expenditure either to promote economic growth, but can also enhance the steady-state level of labor supply. When the economy is in a steady-state growth, the optimal size of government productive expenditure, the optimal tax rate and the steady-state labor supply level will be determined; (2) Government the productive expenditure part, namely, the basic construction spending, spending on education and scientific research expenditures, are having a positive effect on economic growth, but the level of significance related to the delay; (3) government production scale of expenditure on economic growth and the level of labor supply significant role in promoting productive government expenditures total upgrade would be beneficial to raise the level of human capital, thus increasing the labor supply, and ultimately achieve its goal of promoting economic growth, but the increase in productive government spending and consumer spending ratio to have a negative impact on economic growth; (4) recommendations on productive government expenditure should maintain a reasonable size and structure, under the premise of maintaining its size relatively stable to avoid the ups and downs of the basic construction spending level, increase spending on education, scientific research expenditure ratio, to play an active role in their economic growth should.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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