Full-Text Search:
Home|About CNKI|User Service|中文
Add to Favorite Get Latest Update

Welfare Expenditures and Long-term Economic Growth——Empirical Estimation with ADL and GMM Methodology

CHEN Si-xia(School of Economics and Management,Wuhan University,Wuhan Hubei 430072,China)  
The article provided a conceptual framework arguing the relationship among employment,investment and economic growth.Furthermore,it empirically tested the direct and indirect mechanism that the welfare public expenditures and non-welfare public expenditures worked on the long-term economic growth,applying the ADL(Averaged Distributed-lagged Model) and GMM(Generalized Method of Moment) methodology with state panel data from 1997-2011.It found out that welfare public expenditures promoted long-term economic growth through urging the employment and investment increase.But directly seen,as welfare public expenditures had to be financed by increasing the tax collection,the decreasing return of aftertax earnings brought down the profit expectation of both residents and enterprises,which finally showed negative to long-term economic growth.When the government enlarged the scale of welfare public expenditures,it was also necessary to encourage the enterprises providing more working chances and lead the optimization of investment resources allocation.Only by exerting the employment and investment increase,just like adjusting the tax structure and optimizing public goods supply,can the welfare expenditures really promote the long-term economic growth.
Download(CAJ format) Download(PDF format)
CAJViewer7.0 supports all the CNKI file formats; AdobeReader only supports the PDF format.
©CNKI All Rights Reserved