Investigating the Effects of Public Expenditure Structure on Regional Comprehensive Development
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| Title | Investigating the Effects of Public Expenditure Structure on Regional Comprehensive Development
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| Author | Gong Pu and Yang Yongheng |
| Organization | Tsinghua University |
| Email | yhyang@tsinghua.edu.cn |
| Key Words | Public Expenditure Structure; Regional Comprehensive Development; Economic Growth; HDI |
| Abstract | This paper studies the effect of public expenditure and its structure on regional comprehensive development. Following the IMF’s classification of public expenditure, this study formulates a theoretical model elaborating the effects of economic affairs and social affairs expenditure on comprehensive development, and uses China’s cross-provincial panel data from 1995 to 2010 to empirically examine the effects of economic affairs expenditure and social affairs expenditure on regional economic development and comprehensive development. The empirical analysis indicates that for both economic growth and comprehensive development, the contribution of economic affairs expenditure has exceeded the optimal size. And the marginal effect of economic affairs expenditure has been significantly less than social affairs expenditure. This paper also finds that the effects of the two types of public expenditure on local economic growth and comprehensive development are different among the western, middle and eastern China. |
| Serial Number | WP779 |
| Time | 2014-12-19 |
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