Trend of Fiscal Expenditure’s Economic Effect

Experience from China

DOI

10.2991/assehr.k.211209.505How to use a DOI?

Keywords

Fiscal Expenditure; Consumption; Investment; Growth; Crowding out Effect; Trend Research

Abstract

Based on the panel data of Chinese mainland’s 31 province from 1978 to 2020, this paper studies the economic effects of government fiscal expenditure. The results show that: first, fiscal expenditure crowds out consumption, promotes investment and growth. Second, with the continuous increase of fiscal expenditure, the economic effect shows a dynamic trendency. The crowding out effect of fiscal expenditure on consumption is undulating, firstly enhanced, then weaken, and then enhanced again. The inducing effect on investment first increases and then decreases, showing an inverted U-shape, while its promoting effect on growth continues to increase during the sample period.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Qing Yang
AU  - Chunhui Yuan
PY  - 2021
DA  - 2021/12/15
TI  - Trend of Fiscal Expenditure’s Economic Effect
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 3087
EP  - 3091
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.505
DO  - 10.2991/assehr.k.211209.505
ID  - Yang2021
ER  -