The Fiscal Policy of China's Economic Kinetic Energy Conversion

Han Wu; Ke Gao; Xiao-jing Hao; Wen Shi

doi:doi:10.11648/j.ss.20180703.12

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The Fiscal Policy of China's Economic Kinetic Energy Conversion

Han Wu, Ke Gao, Xiao-jing Hao, Wen Shi

Published in Social Sciences (Volume 7, Issue 3)

Received: 26 April 2018 Published: 27 April 2018

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Abstract

After a long period of rapid economic growth, China has grown to become the second largest economy in the world. The internal and external environment facing the new era of economic kinetic energy conversion has undergone profound changes. The inherent economic development model is facing unprecedented risks and challenges. How to crack down on the current difficulties and smoothly realize the continuous conversion of new and old kinetic energy of our economy so as to continuously promote the development and improvement of Socialism with Chinese Characteristics and achieve long-term peace and stability in the modernized countries? This is the question of the times and the responsibility of history. In order to classify and examine changes in the impact of several key fiscal expenditure changes on GDP, such as education expenditure, science and technology expenditures, social security and employment expenditures, and energy conservation and environmental protection expenditure, this paper analyzes the dynamic impact of fiscal expenditure on economic growth by constructing a VAR model. Research shows that the interaction between various fiscal expenditures, CPI, M2, and GDP is significant; as the number of periods increases, the contribution of fiscal expenditure to GDP basically increases. Under the framework of the modern fiscal system, the adjustment of China's fiscal policy should be based on changes in the economic environment and the situation. While strengthening demand management, it should focus on supply management and structural adjustment, and strengthen the coordination of fiscal and monetary policies so as to increase the overall effect of macro-control, strengthen the authority and effectiveness of macro-control measures to promote sustainable and healthy economic development.

Published in	Social Sciences (Volume 7, Issue 3)
DOI	10.11648/j.ss.20180703.12
Page(s)	115-124
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Fiscal Policy, Old and New Kinetic Energy, Kinetic Energy Conversion

References

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[9]	Chu De-yin, Cui Li-li. (2014). Asymmetry of Output Effects of China's Fiscal Policy. Finance and Trade Economics, 12, 27-39.
[10]	Wang Wen-fu, Zhang Nan, Yue Chao-yun. (2015). Identification and Effects of China's Fiscal Policy Impact: SVAR Analysis under Symbolic Constraint Method. Research in Finance and Economics, 6, 70-81.
[11]	Chen Shi-yi, Chen Deng-ke. (2015). China's Fiscal Expenditure Multiplier and Economic Cycle (Working Paper). Economic Research.
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APA Style

Han Wu, Ke Gao, Xiao-jing Hao, Wen Shi. (2018). The Fiscal Policy of China's Economic Kinetic Energy Conversion. Social Sciences, 7(3), 115-124. https://doi.org/10.11648/j.ss.20180703.12

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ACS Style

Han Wu; Ke Gao; Xiao-jing Hao; Wen Shi. The Fiscal Policy of China's Economic Kinetic Energy Conversion. Soc. Sci. 2018, 7(3), 115-124. doi: 10.11648/j.ss.20180703.12

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AMA Style

Han Wu, Ke Gao, Xiao-jing Hao, Wen Shi. The Fiscal Policy of China's Economic Kinetic Energy Conversion. Soc Sci. 2018;7(3):115-124. doi: 10.11648/j.ss.20180703.12

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@article{10.11648/j.ss.20180703.12,
  author = {Han Wu and Ke Gao and Xiao-jing Hao and Wen Shi},
  title = {The Fiscal Policy of China's Economic Kinetic Energy Conversion},
  journal = {Social Sciences},
  volume = {7},
  number = {3},
  pages = {115-124},
  doi = {10.11648/j.ss.20180703.12},
  url = {https://doi.org/10.11648/j.ss.20180703.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ss.20180703.12},
  abstract = {After a long period of rapid economic growth, China has grown to become the second largest economy in the world. The internal and external environment facing the new era of economic kinetic energy conversion has undergone profound changes. The inherent economic development model is facing unprecedented risks and challenges. How to crack down on the current difficulties and smoothly realize the continuous conversion of new and old kinetic energy of our economy so as to continuously promote the development and improvement of Socialism with Chinese Characteristics and achieve long-term peace and stability in the modernized countries? This is the question of the times and the responsibility of history. In order to classify and examine changes in the impact of several key fiscal expenditure changes on GDP, such as education expenditure, science and technology expenditures, social security and employment expenditures, and energy conservation and environmental protection expenditure, this paper analyzes the dynamic impact of fiscal expenditure on economic growth by constructing a VAR model. Research shows that the interaction between various fiscal expenditures, CPI, M2, and GDP is significant; as the number of periods increases, the contribution of fiscal expenditure to GDP basically increases. Under the framework of the modern fiscal system, the adjustment of China's fiscal policy should be based on changes in the economic environment and the situation. While strengthening demand management, it should focus on supply management and structural adjustment, and strengthen the coordination of fiscal and monetary policies so as to increase the overall effect of macro-control, strengthen the authority and effectiveness of macro-control measures to promote sustainable and healthy economic development.},
 year = {2018}
}

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TY  - JOUR
T1  - The Fiscal Policy of China's Economic Kinetic Energy Conversion
AU  - Han Wu
AU  - Ke Gao
AU  - Xiao-jing Hao
AU  - Wen Shi
Y1  - 2018/04/27
PY  - 2018
N1  - https://doi.org/10.11648/j.ss.20180703.12
DO  - 10.11648/j.ss.20180703.12
T2  - Social Sciences
JF  - Social Sciences
JO  - Social Sciences
SP  - 115
EP  - 124
PB  - Science Publishing Group
SN  - 2326-988X
UR  - https://doi.org/10.11648/j.ss.20180703.12
AB  - After a long period of rapid economic growth, China has grown to become the second largest economy in the world. The internal and external environment facing the new era of economic kinetic energy conversion has undergone profound changes. The inherent economic development model is facing unprecedented risks and challenges. How to crack down on the current difficulties and smoothly realize the continuous conversion of new and old kinetic energy of our economy so as to continuously promote the development and improvement of Socialism with Chinese Characteristics and achieve long-term peace and stability in the modernized countries? This is the question of the times and the responsibility of history. In order to classify and examine changes in the impact of several key fiscal expenditure changes on GDP, such as education expenditure, science and technology expenditures, social security and employment expenditures, and energy conservation and environmental protection expenditure, this paper analyzes the dynamic impact of fiscal expenditure on economic growth by constructing a VAR model. Research shows that the interaction between various fiscal expenditures, CPI, M2, and GDP is significant; as the number of periods increases, the contribution of fiscal expenditure to GDP basically increases. Under the framework of the modern fiscal system, the adjustment of China's fiscal policy should be based on changes in the economic environment and the situation. While strengthening demand management, it should focus on supply management and structural adjustment, and strengthen the coordination of fiscal and monetary policies so as to increase the overall effect of macro-control, strengthen the authority and effectiveness of macro-control measures to promote sustainable and healthy economic development.
VL  - 7
IS  - 3
ER  -

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Author Information

Han Wu

The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Ke Gao

The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Xiao-jing Hao

The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China
Wen Shi

The School of Accountancy, Shanghai University of Finance and Economics, Shanghai, P. R. China

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Plain Text BibTeX RIS

APA Style

Han Wu, Ke Gao, Xiao-jing Hao, Wen Shi. (2018). The Fiscal Policy of China's Economic Kinetic Energy Conversion. Social Sciences, 7(3), 115-124. https://doi.org/10.11648/j.ss.20180703.12

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ACS Style

Han Wu; Ke Gao; Xiao-jing Hao; Wen Shi. The Fiscal Policy of China's Economic Kinetic Energy Conversion. Soc. Sci. 2018, 7(3), 115-124. doi: 10.11648/j.ss.20180703.12

Copy | Download

AMA Style

Han Wu, Ke Gao, Xiao-jing Hao, Wen Shi. The Fiscal Policy of China's Economic Kinetic Energy Conversion. Soc Sci. 2018;7(3):115-124. doi: 10.11648/j.ss.20180703.12

Copy | Download

@article{10.11648/j.ss.20180703.12,
  author = {Han Wu and Ke Gao and Xiao-jing Hao and Wen Shi},
  title = {The Fiscal Policy of China's Economic Kinetic Energy Conversion},
  journal = {Social Sciences},
  volume = {7},
  number = {3},
  pages = {115-124},
  doi = {10.11648/j.ss.20180703.12},
  url = {https://doi.org/10.11648/j.ss.20180703.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ss.20180703.12},
  abstract = {After a long period of rapid economic growth, China has grown to become the second largest economy in the world. The internal and external environment facing the new era of economic kinetic energy conversion has undergone profound changes. The inherent economic development model is facing unprecedented risks and challenges. How to crack down on the current difficulties and smoothly realize the continuous conversion of new and old kinetic energy of our economy so as to continuously promote the development and improvement of Socialism with Chinese Characteristics and achieve long-term peace and stability in the modernized countries? This is the question of the times and the responsibility of history. In order to classify and examine changes in the impact of several key fiscal expenditure changes on GDP, such as education expenditure, science and technology expenditures, social security and employment expenditures, and energy conservation and environmental protection expenditure, this paper analyzes the dynamic impact of fiscal expenditure on economic growth by constructing a VAR model. Research shows that the interaction between various fiscal expenditures, CPI, M2, and GDP is significant; as the number of periods increases, the contribution of fiscal expenditure to GDP basically increases. Under the framework of the modern fiscal system, the adjustment of China's fiscal policy should be based on changes in the economic environment and the situation. While strengthening demand management, it should focus on supply management and structural adjustment, and strengthen the coordination of fiscal and monetary policies so as to increase the overall effect of macro-control, strengthen the authority and effectiveness of macro-control measures to promote sustainable and healthy economic development.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - The Fiscal Policy of China's Economic Kinetic Energy Conversion
AU  - Han Wu
AU  - Ke Gao
AU  - Xiao-jing Hao
AU  - Wen Shi
Y1  - 2018/04/27
PY  - 2018
N1  - https://doi.org/10.11648/j.ss.20180703.12
DO  - 10.11648/j.ss.20180703.12
T2  - Social Sciences
JF  - Social Sciences
JO  - Social Sciences
SP  - 115
EP  - 124
PB  - Science Publishing Group
SN  - 2326-988X
UR  - https://doi.org/10.11648/j.ss.20180703.12
AB  - After a long period of rapid economic growth, China has grown to become the second largest economy in the world. The internal and external environment facing the new era of economic kinetic energy conversion has undergone profound changes. The inherent economic development model is facing unprecedented risks and challenges. How to crack down on the current difficulties and smoothly realize the continuous conversion of new and old kinetic energy of our economy so as to continuously promote the development and improvement of Socialism with Chinese Characteristics and achieve long-term peace and stability in the modernized countries? This is the question of the times and the responsibility of history. In order to classify and examine changes in the impact of several key fiscal expenditure changes on GDP, such as education expenditure, science and technology expenditures, social security and employment expenditures, and energy conservation and environmental protection expenditure, this paper analyzes the dynamic impact of fiscal expenditure on economic growth by constructing a VAR model. Research shows that the interaction between various fiscal expenditures, CPI, M2, and GDP is significant; as the number of periods increases, the contribution of fiscal expenditure to GDP basically increases. Under the framework of the modern fiscal system, the adjustment of China's fiscal policy should be based on changes in the economic environment and the situation. While strengthening demand management, it should focus on supply management and structural adjustment, and strengthen the coordination of fiscal and monetary policies so as to increase the overall effect of macro-control, strengthen the authority and effectiveness of macro-control measures to promote sustainable and healthy economic development.
VL  - 7
IS  - 3
ER  -

Copy | Download