The Impacts of Public Debt and Government Expenditure on Economic Growth: Evidence from China

• Main Authors: Chia Chen Lee, 李家溱
• Other Authors: Bin Ru Lin
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/63dyvu

碩士 === 國立臺中科技大學 === 財政稅務系租稅管理與理財規劃碩士班 === 102 === The economic growth has been raised rapidly in China over decades; especially it’s growth rate almost kept 15.33% for ten years (2001-2011). By accumulating the gigantic, $31 thousand billion, foreign exchange reserves, Mainland China became the biggest international trade country of the world. On the other hand, the authority government adopted the open door policy in 1978. We can discover the symptoms and impacts of economic growth by digging the public economic information. In this study, we debated that the Wagner’s law can be applied to the economic of China, and took a relation between the government bond, government expenditure, and economic growth into account from 1979 to 2004. In this empirical study, we provided some suggestions for the China government to help and modify its economic reform. In the empirical study, we found that there are significant positive relations between the economic growth and infrastructure expenditures、reinforcement of corporate liquidity、innovation funds、geological exploration expenses、Industry、transportation and circulation department career、support agricultural expenditure、social security expenditure、defense expenditure and subsidies expenses. That is to say that the theories of Keynes can be proved in China. On the other hand, we found that both per capita income and finical expenditure exist co-movement tendency, and the income elasticity of money is over one in the expenditure government as well.