The Fiscal Policy of China's Economic Kinetic Energy Conversion
Volume 7, Issue 3, June 2018, Pages: 115-124
Received: Apr. 26, 2018;
Published: Apr. 27, 2018
Views 1488 Downloads 84
Han Wu, The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Ke Gao, The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Xiao-jing Hao, The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Wen Shi, The School of Accountancy, Shanghai University of Finance and Economics, Shanghai, P. R. China
Follow on us
After a long period of rapid economic growth, China has grown to become the second largest economy in the world. The internal and external environment facing the new era of economic kinetic energy conversion has undergone profound changes. The inherent economic development model is facing unprecedented risks and challenges. How to crack down on the current difficulties and smoothly realize the continuous conversion of new and old kinetic energy of our economy so as to continuously promote the development and improvement of Socialism with Chinese Characteristics and achieve long-term peace and stability in the modernized countries? This is the question of the times and the responsibility of history. In order to classify and examine changes in the impact of several key fiscal expenditure changes on GDP, such as education expenditure, science and technology expenditures, social security and employment expenditures, and energy conservation and environmental protection expenditure, this paper analyzes the dynamic impact of fiscal expenditure on economic growth by constructing a VAR model. Research shows that the interaction between various fiscal expenditures, CPI, M2, and GDP is significant; as the number of periods increases, the contribution of fiscal expenditure to GDP basically increases. Under the framework of the modern fiscal system, the adjustment of China's fiscal policy should be based on changes in the economic environment and the situation. While strengthening demand management, it should focus on supply management and structural adjustment, and strengthen the coordination of fiscal and monetary policies so as to increase the overall effect of macro-control, strengthen the authority and effectiveness of macro-control measures to promote sustainable and healthy economic development.
Fiscal Policy, Old and New Kinetic Energy, Kinetic Energy Conversion
To cite this article
The Fiscal Policy of China's Economic Kinetic Energy Conversion, Social Sciences.
Vol. 7, No. 3,
2018, pp. 115-124.
Propaganda Department of the CPC Central Committee. (2016). General Secretary Xi Jin-ping's series of important speech readers (2016 edition). Learning Press, People's Publishing House.
Office of the State Council Press, et al. (2017). Xi Jin-ping talks about the governance of the country (Volume Two). Foreign Languages Press.
Hu Kun, Chen Wei-ke. (2004). An Empirical Study on the Validity of China's Fiscal Policy. China Soft Science, 5, 60-65.
Fu Yi-ping, Liu Jin-quan, Liang Bing. (2005). Research on the Relationship between the Mechanism of China's Fiscal Policy and Economic Cycle Fluctuation. Contemporary Economic Science, 4, 25-30.
Wu Hong-peng, Liu Lu. (2007). Extrusion or Intrusion: The Effect of Public Investment on Private Investment. World Economy, 2, 13-22.
Wang Wen-fu, Zhu Bao-hua. (2010). Externalities of government expenditure and macroeconomic effects of Chinese government expenditure: A perspective of dynamic stochastic general equilibrium. Economic Science, 2, 17-28.
Zhang Bin. (2011). Empirical Analysis of the Dynamic Impact of Fiscal and Tax Policies on Industrial Structure Adjustment. Business Times, 12, 50-51.
GaoKe-xiang, Xu Tao. (2013). The dynamic effect of China's fiscal policy shock: An empirical study based on SVAR model. Finance and Economics, 8, 52-55.
Chu De-yin, Cui Li-li. (2014). Asymmetry of Output Effects of China's Fiscal Policy. Finance and Trade Economics, 12, 27-39.
Wang Wen-fu, Zhang Nan, Yue Chao-yun. (2015). Identification and Effects of China's Fiscal Policy Impact: SVAR Analysis under Symbolic Constraint Method. Research in Finance and Economics, 6, 70-81.
Chen Shi-yi, Chen Deng-ke. (2015). China's Fiscal Expenditure Multiplier and Economic Cycle (Working Paper). Economic Research.
Lin Yong-qin, Deng Qun-zhao, Xiao Li-qun, et al. (2017). Test of Causality between Fiscal Expenditure and Economic Growth. Statistics & Decisions, 20, 164-167.
Dai Jin-ping, Liu Jin-cai. (2017). Research on the Non-linear Relationship between Government Financial Expenditure and Regional Economic Growth: A Threshold Test Based on Chinese Provincial Panels. Journal of Social Sciences, 4, 57-64.
Zhan Xin-yu, Wang Su-li. (2017). Research on the Quality Effect of Economic Growth in Fiscal Expenditure Structure——Based on the Perspective of “Five Development Concepts”. Contemporary Finance and Economics, 4, 25-37.
Zhang Ming-hong, Lu Xiao-jun, Zhang Zhi-yuan. (2016). Research on Employment Effect of Fiscal Expenditure Structure: Theory and Empirical Evidence. East China Economic Management, 4, 6-11.
Liu Xiao-dong. (2016). Research on the Relationship between Regional Economic Growth and Financial Investment in Science and Education. Statistics and Decision, 23, 136-140.