An Empirical Study on the Effect of Chinese Government's Non-Tax Revenue Spending on Its GDP's Growth

摘要

This paper presents the growth effect of Chinese government non-tax revenue spending on its Gross Domestic Product (GDP) using the variance Decomposition Technique. The results show that Government Purchase (GP) expenditures have a significant explanatory power on the long-run economic growth. Whereas, Government Non-Tax Revenue Expenditure (GNR) and the Government Fundamental Investment (GFI) have limited impact on the rate of long-run economic growth.