Research on Relationship Between Local Government Expenditure and Total Output in China

DOI

10.2991/assehr.k.210407.073How to use a DOI?

Keywords

government expenditure, total output, theoretical model, linear regression, data visualization

Abstract

Since the impact of the international financial crisis in 2008, countries have expanded their expenditure levels to varying degrees in order to promote economic development and recovery. The paper first establishes a theoretical model of the relationship between government expenditure and the contribution rate of total output growth, and then analyzes their relationship based on China’s local fiscal data (665 in total) from 2013 to 2018. The theoretical model shows that government expenditure not only directly promotes output growth, but also indirectly promotes output growth through the promotion of consumption and investment. At the same time, it also estimates the contribution rate of government expenditure to output growth. In addition, the linear regression results show that government expenditure has a positive correlation with total output. Finally, data visualization analysis is carried out for each prefecture-level city in Zhejiang Province, and it is further concluded that government expenditure has a positive effect on the economy.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jiaqi Qin
AU  - Zheng Tao
AU  - Shansong Huang
AU  - Nancy Ye
AU  - Gaurav Gupta
PY  - 2021
DA  - 2021/04/08
TI  - Research on Relationship Between Local Government Expenditure and Total Output in China
BT  - Proceedings of the 2021 6th International Conference on Social Sciences and Economic Development (ICSSED 2021)
PB  - Atlantis Press
SP  - 371
EP  - 376
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210407.073
DO  - 10.2991/assehr.k.210407.073
ID  - Qin2021
ER  -