Fiscal Investment Impact on Economic Growth

Guo Qingwang and Jia Junxue

Abstract:

Focusing on the 8-2003 annual statistics about China, and by using vector auto-regression (VAR) and impulse response function, this paper takes an analytic look at the dynamic impacts of aggregate fiscal investment, fiscal capital investment and fiscal innovation investment on aggregate output, total-factor productivity and private investment. Through these analyses, the authors prove that fiscal investment has a remarkably positive impact on economic growth and a strong crowd-in effect on private investment. Moreover, some of the salient features of fiscal investment’s dynamic impacts on economic growth and private investment have an important bearing on the design of the Chinese fiscal policy and the timing of its implementation.

¥0.01加入购物车