The Supply of Public Goods and Economic Growth: Impact Mechanism and Empirical Analysis
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| Title | The Supply of Public Goods and Economic Growth: Impact Mechanism and Empirical Analysis
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| Author | Han Baojiang and Han Xinling |
| Organization | The Central Party School of the CPC |
| Email | hanbj@ccps.gov.cn |
| Key Words | Public Expenditure;Public Goods and Service;Economy growth;Structure Optimization; Panel Data |
| Abstract | The supply of public goods and public service not only determines directly the economic growth because it's actually the important part of social total product，but also affects indirectly economic growth as it affects efficiency of production factors allocation and private products. Government public expenditure is the material basis of public goods and public services for all citizens，so as to provide basic support for economic growth and social development. Therefore，based on the systematic analysis of the mechanism and approach which the supply of the three kinds of public goods acts on economic growth，this paper takes the public expenditure as the substitute variable of the public goods and the public service，constructs an endogenous economic growth model by taking public product and public service endogenous variable，puts forward with "public goods residual value " to explain the economic growth which the capital, labor, technology progress and human capital cannot directly explain. Using Eastern China, central China and western China， respectively， 31 provincial-level administrative regions panel data from 2007 to 2014 years， we conduct an empirical study about the effect on the public expenditure structure to economic growth. The result shows that the general public expenditure， social and livelihood expenditure and economic construction expenditure have positive role in promoting the four regions economic growth， which proves it is effective for China applying to expand public services policy as an engine of economic growth. Public expenditure has different influences in the eastern， central and western China .Economic construction expenditure effect is most obvious in central and western China， and public service expenditure has best effect in eastern China. So optimization of the three regional public goods supply structure should adopt different policies. |
| Serial Number | WP1060 |
| Time | 2017-02-24 |
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