Effect of Fiscal Expenditure Structure in China on Total Factor Productivity: Empirical Analysis Based on Provincial Panel Data

The paper used the data from 1998 to 2012 of 30 provinces in China to observe the influence of scale and structure of fiscal expenditure in China on total factor productivity through the panel data model. The study shows that the scale of fiscal expenditure has conductive promotion to total factor productivity. The influences are different in diverse years. Finally, the paper studies the endogenous effect of total factor productivity with GMM model.